Compute the yield curve for the next three years

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Reference no: EM131868246

Suppose that the interest rate on one-year bonds is currently 2.5 percent and is expected to be 2 percent in one year and 4 percent in two years. Using the expectations hypothesis, compute the yield curve for the next three years.

Instructions: Enter your responses rounded to the nearest two decimal places.

Yield for one-year bond = ___%

Yield for two-year bond = ___%

Yield for three-year bond = ____ %

Reference no: EM131868246

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