The one-year spot interest rate is r1 56 and the two-year, Ask an Expert

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The one-year spot interest rate is r1 = 5.6% and the two-year rate is r2 = 6.6%. If the expectations theory is correct, what is the expected one-year interest rate in one year’s time? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected interest rate =%

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Category:- Financial Management
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