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Question
A one-year interest rate is 5.50% and a one-year forward rate two years from now is 6.0%. According to the expectations theory, what is the current two-year rate?a. The rate cannot be calculated from the information above.
b. 5.0%
c. 5.5%
d. 6.0%
e. 6.25%
Answer
This answer is hidden. It contains 3 characters.
Related questions
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