(Answered) If the one-year us government bond spot rate is 5 what is

Economics

If the one-year U.S. government bond spot rate is 5%, what is the expected one-year spot rate three years from now if the Liquidity Preference Theory is correct (assume a flat yield curve)? A. Less than 5% B. 5% C. More than 5% D. There is not enough information to answer this question. E. None of the above.

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