Question
Assume investors are indifferent among security maturities. Today, the annualized 2-year interest rate is 12%, and the 1-year interest rate is 9%. Assuming that interest
Assume investors are indifferent among security maturities. Today, the annualized 2-year interest rate is 12%, and the 1-year interest rate is 9%. Assuming that interest is compounded, what is the forward rate according to the pure expectations theory?
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Technical Analysis The Complete Resource for Financial Market Technicians
Authors: Charles D. Kirkpatrick, Julie R. Dahlquist
1st edition
134137043, 134137049, 978-0131531130
