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Assume the current interest rate on a 1 - year Treasury bond ( 1 R 1 ) is 6 . 1 0 percent, the current
Assume the current interest rate on a year Treasury bond is percent, the current rate on a year Treasury bond is percent, and the current rate on a year Treasury bond is percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the year forward rate expected on Treasury bills during year
Note: Do not round intermediate calculations. Round your percentage answer to decimal places ie should be entered as
Expected forward rate
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