Question
Assume that the pure expectations theory of the term structure is correct. Todays term structure is 11.662% pa for a term of 1 year, 12.517%
Assume that the pure expectations theory of the term structure is correct. Todays term structure is 11.662% pa for a term of 1 year, 12.517% pa for a term of 2 years and 13.044% pa for a term of 3 years. You are asked to forecast next years interest rate for a term of 2 years. What is your forecast?
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Passive Income A Guide To Building Passive Income Streams
Authors: Yun Jin Xu
1st Edition
979-8866884490
