According to the expectations theory of the term structure, the equilibrium relationship between the n-period interest rate and the n 1-year interest rates is:
A) i (t) = (1/n) [i (t) + i (t + 1) + ... + i (t + n - 1) ]. n 1 1 1
B) Ei (t) = (1/n) [i (t) + i (t + 1) + … + i (t + n - 1) ]. n 1 1 1
C) Ei (t) = n·[i (t) + Ei (t + 1) + ... + Ei (t + n - 1) ]. n 1 1 1
D) i (t) = (1/n) [i (t) + Ei (t + 1) + ... + Ei (t + n - 1) ].
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