Suppose that the spot interest rate on a one-year zero-coupon bond is 1%, and the spot...

Suppose that the spot interest rate on a one-year zero-coupon bond is 1%, and the spot interest rate on a two-year zero-coupon bond is 2%. Suppose also that you expect the one-year interest rate starting in one year to be 1%. Relative to the market expectations, do you think a recession is more likely or less likely?

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jeff jeffy answered 1 year ago

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