According to the Expectations Theory,what Will Be the Interest Rate

question 38

Short Answer

According to the expectations theory,what will be the interest rate on a three-year bond if a one-year bond has an interest rate of 2% and is expected to have an interest rate of 3% next year and 5% in two year? Report your answer using a percentage with two decimal places.

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Definitions:

Levels Of Management

The hierarchical structure within an organization that classifies positions from top management (executives) through middle management down to lower-level management.

Ethical Tone

The overall mood or climate of an organization as it relates to ethics, set by leadership and reflected in the organization's culture and behavior towards ethical decision-making.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone; accountability.

Social Audit

A systematic assessment of an organisation’s accomplishments in areas of social responsibility.