Which statement defines equilibrium in a graph showing demand and supply curves? A. It is the point where the demand and supply
2 answers:
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Answer:
Expectation theory predicts the short-term interest rates by taking average of current-interest rates over a period of time. The interest rates for the following securities using the expectation theory would be:
Interest rate on 3 year bond = = 4.5%
Interest rate on 6 year bond = = 6.75%
Interest rate on 9 year bond = = 9.33%