Question
A one year Treasury bill offers a 7.5% yield to maturity. The market's concensus forecast is that one year T-bills will offer 7% next year.
A one year Treasury bill offers a 7.5% yield to maturity. The market's concensus forecast is that one year T-bills will offer 7% next year. What is the current yield on a 2 year T-bill if the expectations hypothesis holds? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below. Enter your answer to 2 DECIMAL PLACES.
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The Complete Guide To Capital Markets For Quantitative Professionals
Authors: Alex Kuznetsov
1st Edition
0071468293, 978-0071468299
