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A recent edition of The Wall Street Journal reported interest rates of 6.75 percent, 710 percent. 7.48 percent, and 7.75 percent for 3.4 5,
A recent edition of The Wall Street Journal reported interest rates of 6.75 percent, 710 percent. 7.48 percent, and 7.75 percent for 3.4 5, and 6 year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of Interest rates, what are the expected 1-year forward rates for years 4, 5, and 6? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Years Forward Rates 4 5. 6
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