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If you observe today’s yield on one-year T-bills is 5.0% and on two-year T-bonds is 4.9%,...

If you observe today’s yield on one-year T-bills is 5.0% and on two-year T-bonds is 4.9%, what can you conclude about the expected direction of interest rates next year?

. going up

            b. going down

            c. remain unchanged

            d. can not be determined with given information

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Answer #1

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