One-year Treasury bills currently earn 3.45 percent. You expect that one year from now, one-year Treasury bill

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One-year Treasury bills currently earn 3.45 percent. You expect that one year from now, one-year Treasury bill rates will increase to 3.65 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities? (LG 2-7)

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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