Compute the expected one-year interest rates in third year

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The interest rate on one-year treasury bonds is 1.0 percent, the rate on two-year bonds is 0.9 percent, and the rate on three year T-bonds is 0.8 percent.

Using the expectations theory. Compute the expected one-year interest rates in (a.)the second year and (b.) the third year.

Reference no: EM131928024

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