Question
A one-year Treasury bill offers a 7% yield to maturity. A two-year Treasury bill offers a 7.2% yield to maturity. What is the expected forward
A one-year Treasury bill offers a 7% yield to maturity. A two-year Treasury bill offers a 7.2% yield to maturity. What is the expected forward rate for the second year if the expectation hypothesis holds? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES.
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The Bank Credit Analysis Handbook
Authors: Jonathan Golin, Philippe Delhaise
2nd Edition
0470821574, 978-0470821572
