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Assume the current interest rate on a one-year Treasury bond (1R1) is 4.50 percent, the current rate on a two-year Treasury bond (1R2) is 5.25
Assume the current interest rate on a one-year Treasury bond (1R1) is 4.50 percent, the current rate on a two-year Treasury bond (1R2) is 5.25 percent, and the current rate on a three-year Treasury bond (1R3) is 6.50 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the one-year interest rate expected on Treasury bills during year 2 (E( 2r1) or 2 f1)? please show how to do in excel
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