Question
Consider the following T-Bond yields: T-Bond Years to Maturity Average Yield per Year A 1 5% B 2 6% C 3 7% What is the
Consider the following T-Bond yields:
| T-Bond | Years to Maturity | Average Yield per Year |
| A | 1 | 5% |
| B | 2 | 6% |
| C | 3 | 7% |
What is the 1-year implied forward rate two years from now (i.e. the one year rate that is expected to prevail two years from now) according to pure expectations theory?
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The Money Book Of Personal Finance
Authors: Richard Eisenberg
1st Edition
0446524298, 9780446524292
