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According to the Unbiased Expectation Theory, if the one year interest rate is 1.80%, 1R 1=1.80%, and the expected one year rate is 2.5%, 3.74%,
According to the Unbiased Expectation Theory, if the one year interest rate is 1.80%, 1R 1=1.80%, and the expected one year rate is 2.5%, 3.74%, and 4.1% for the 2nd, 3rd, and 4th yearE( 27 )=2.5%, E( 3r 1)=3.74% El 4r )=4.1%, respectively. How much is the forward interest rate? 2.9711 2.9934% 3.0308% 3.0412%
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