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Given the following term structure and assuming the unbiased expectation theory holds, answer the following questions: Term Structure of Treasury Securities Year Yield % 1
- Given the following term structure and assuming the unbiased expectation theory holds, answer the following questions:
Term Structure of Treasury Securities
Year Yield %
1 3.7
2 3.2
3 3.1
4 3.0
5 2.9
- What is the 3-year rate 1 year from today?
- What is the 2-year rate 3 years from today?
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