Question
Interest rates on 4-year Treasury securities are currently 5.25%, while 6-year Treasury securities yield 8%. If the pure expectations theory is correct, what does the
Interest rates on 4-year Treasury securities are currently 5.25%, while 6-year Treasury securities yield 8%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places.
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The Dark Side Of Valuation
Authors: Aswath Damodaran
2nd Edition
0137126891, 9780137126897
