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A recent edition of The Wall Street Journal reported interest rates of 3.15 percent, 3.50 percent, 3.88 percent, and 4.15 percent for three-year, four-year, five-year,
A recent edition of The Wall Street Journal reported interest rates of 3.15 percent, 3.50 percent, 3.88 percent, and 4.15 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory of the term structure of interest rates, what are the expected one-year rates during years 4, 5, and 6? |
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