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The current rate of return on a one-year us government

The current rate of return on a one-year U.S. Government security is 3%. The rate of return on a two-year U.S. Government security is 5%. According to the expectations theory, what is the return on a one-year U.S. Government security purchased one year from today?

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Finance Basics: The current rate of return on a one-year us government

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