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Hello! May you please answer and round final answer to four decimal places? Thank you so much! :) Today, Interest rates on 1-year T-bonds yield
Hello! May you please answer and round final answer to four decimal places? Thank you so much! :)
Today, Interest rates on 1-year T-bonds yield 1,6%, Interest rates on 2-year T-bonds yield 2.6%, and interest rates on 3-year T-bands yield 3.8% a. Ir the pure expectations theory is correct, what is the yield on 1-Year T-bonds one year from now? Be sure to use a geometric average in your calculations. Do not found Intermediate calculations. Round your answer to four decimal places. b. If the pure expectations theory is correct, what is the yield on 2-year T-bonds one year from now? Be sure to use a geometric average in your calculations. Do not found Intermediate calculations. Round your answer to four decimal places. c. If the pure expectations theory is correct, what is the yield on 1 year T-bonds two years from now? Be sure to use a geometric average in your calculations. Do not found Intermediate calculations. Round your answer to four decimal places 96 Step by Step Solution
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