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Business, 16.01.2020 04:31 dmccray3357

Assume that the real risk-free rate is 1% and that the maturity risk premium is zero. if a 1-year treasury bond yield is 7% and a 2-year treasury bond yields 8%, what is the 1-year interest rate that is expected for year 2? calculate this yield using a geometric average. do not round intermediate calculations. round your answer to two decimal places.

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Assume that the real risk-free rate is 1% and that the maturity risk premium is zero. if a 1-year tr...
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