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How can you take advantage of these rates to earn a

You observe the following market interest rates, for both borrowing and lending:

one-year rate = 5%

two-year rate = 6%

one-year rate one year from now = 7.25%

How can you take advantage of these rates to earn a riskless profit? Assume that the Pure Expectation Theory for interest rates holds.

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Macroeconomics: How can you take advantage of these rates to earn a

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