The Current Rate of Return on a One-Year U

question 144

Essay

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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Definitions:

Incessantly

Continuing without interruption; unending, often in an annoying or undesired way.

Composition

A term referring to the arrangement or makeup of something's parts or elements, often used in contexts ranging from music to writing, and to the chemical makeup of substances.

Maladaptation

Behavior or traits that are counterproductive to an individual's well-being or survival in a particular environment.

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.