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Intro You have collected the following forecasts of 1-year Treasury bill rates: Beginning of year 1-year T-bill rate 4% 5% 8% Part 1 - Attempt
Intro You have collected the following forecasts of 1-year Treasury bill rates: Beginning of year 1-year T-bill rate 4% 5% 8% Part 1 - Attempt 1/5 for 10 pts. What rate of return would you expect on a 2-year Treasury note if the pure expectations theory is valid? Disregard cross-product terms, i.e., use the best approximation. 3+ decimals Submit Part 2 | Attempt 1/5 for 10 pts. What rate of return would you expect on a 3-year Treasury note if the pure expectations theory is valid? 3+ decimals Submit
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