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What is the market forecast foe 1-year rates

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Reference no: EM132803286

Suppose the interest rate on a 1-year T-bond is 5.00%. and that on a 2-year T-bond is 6.90%. Assuming the pure expectation theory is correct. What is the market's forecast foe 1-year rates 1 year from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places.

Reference no: EM132803286

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