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can anyone solve this ? Today is 9/11/2020 (September 11, 2020) and today's 1-year spot rate is 0.040, the 2-year spot rate is 0.033, the
can anyone solve this ?
Today is 9/11/2020 (September 11, 2020) and today's 1-year spot rate is 0.040, the 2-year spot rate is 0.033, the 3-year spot rate is 0.021, and the 4-year spot rate is 0.018. Write these down on your answer sheet (you will need them later). According to the pure expectations hypothesis, what is the expected 2-year spot rate for next year (i.e., the 2-year rate that will prevail on 9/11/2021)? Your answer should be entered and rounded to the nearest 5 decimal places (e.g., 5.1236% should be entered as 0.05124)Step by Step Solution
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