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Determining the expected interest rate

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Suppose the yield curve shows a one-year rate of 5.11% (i1,t = 5.11%), and a two-year rate of 4.87% (i2,t =4.87%), then, according to the expectations hypothesis, what is the expected interest rate on one-year rate note one year from now (ie­­­1,t+1)?

Reference no: EM131176927

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