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A recent edition of The Wall Street Journal reported interest rates of 6%, 6.35%, 6.65% and 6.75% for 3-year, 4-year, 5-year and 6-year Treasury notes,
A recent edition of The Wall Street Journal reported interest rates of 6%, 6.35%, 6.65% and 6.75% for 3-year, 4-year, 5-year and 6-year Treasury notes, respectively. | ||||||||||||||||
According to the unbiased expectations hypothesis, what are the expected one-year rates for year 4, 5, and 6 (i.e., what are 4f1, 5f1, and 6f1)? |
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