One-year Treasury bills currently earn 3.75 percent. You expected that one year from now, one-year Treasury bill

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One-year Treasury bills currently earn 3.75 percent. You expected that one year from now, one-year Treasury bill rates will increase to 4.15 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?
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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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