The Wall Street Journal reports that the rate on three-year Treasury securities is 5.60 percent and the

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The Wall Street Journal reports that the rate on three-year Treasury securities is 5.60 percent and the rate on four-year Treasury securities is 5.65 percent.

According to the unbiased expectations hypothesis, what does the market expect the one-year Treasury rate to be in year 4, E ( 4r1 )?

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Financial Institutions Management

ISBN: 9780078034800

8th Edition

Authors: Anthony Saunders, Marcia Cornett

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