Question
One-year treasury bills currently earn 0.39 percent. One year from now, you expect one-year treasury rates to rise to 0.42 percent. If the neutral expectations
One-year treasury bills currently earn 0.39 percent. One year from now, you expect one-year treasury rates to rise to 0.42 percent. If the neutral expectations theory is correct, what should the current rate of two-year Treasury bills be? (Do not round up intermediate calculations. Round your answer to 2 decimal places. (eg 32.16))
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
