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##### (Solution) - If the interest rates on one to five year bonds are

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If the interest rates on one- to five-year bonds are currently 4%, 5%, 6%, 7%, and 8%, and the term premiums for one- to five-year bonds are 0%, 0.25%, 0.35%, 0.40%, and 0.50%, predict what the one-year interest rate will be two years from now.

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This question was answered on: Jul 11, 2017

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