According to the expectations hypothesis what is the, Financial Management

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According to the expectations hypothesis what is the

According to the expectations hypothesis, what is the expected rate of interest on a 2-year zero coupon bond implied by the following term structure: A 1-year zero coupon bond has a yield to maturity of 2% and a 1 year loan starting 2 years from now has a yield to maturity of 4%

a) 6.00% b) 3.00% c) 5.16% d) 6.50% e) None of the above

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