Suppose the interest rate on one-year bonds is equal to 7, Ask an Expert

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Suppose the interest rate on one-year bonds is equal to 7% Suppose one year from now the interest rate on one-year bonds is equal to 7.5% If the expectations theory holds, what is the interest rate on 2 year bonds?

Why would the interest rate between two years vary? Explain

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Financial Management, Finance

Category:- Financial Management
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