According to the Expectations Theory of the Term Structure of Interest,if

question 1

Multiple Choice

According to the expectations theory of the term structure of interest,if the 1-year bond rate today is 7% p.a.and the 1-year bond rate in one year's time is 9% p.a. ,what is 2-year bond rate today?

• A)6%
• B)7.5%
• C)8%
• D)10%

---

Definitions:

Sharing Economy Network

A socio-economic ecosystem built around the sharing of resources, including platforms for peer-to-peer lending, renting, or services.

Blogging Network

A platform or community that connects bloggers, allowing them to share their content, engage with others, and expand their reach.

Real Estate Network

A collaborative network involving professionals, companies, and individuals involved in buying, selling, and managing real estate.

BCC

An acronym for Blind Carbon Copy; a field in email allowing the sender to hide the list of recipients from each other.