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Business, 12.04.2021 20:50 mackenziemelton26

The five-year spot rate is 3.25%. Another option you are considering is buying a three-year zero-coupon bond. When it matures you will then purchase a two-year zero-coupon bond. The current three-year spot rate is 2.5%. What should you expect the two-year spot rate to be in three years from now (when the three-year bond matures and you reinvest in a new two-year bond

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