[Solved] If 1-Year Interest Rates for the Next Five Years Are

Question 89
Multiple Choice
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If 1-year interest rates for the next five years are expected to be 4,2,5,4,and 5 percent,and the 5-year term premium is 1 percent,than the 5-year bond rate will be

A)2 percent.
B)3 percent.
C)4 percent.
D)5 percent.

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