A one-year Treasury bill offers a 6 percent yield to maturity. The markets consensus forecast is that

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A one-year Treasury bill offers a 6 percent yield to maturity. The market’s consensus forecast is that one-year T-bills will offer 6.25 percent next year. What is the current yield on a two-year Treasury security if the expectations hypothesis holds?
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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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