Question
One-year Treasury securities yield 4%. The market anticipates that 1-year from now 1-year Treasury securities will yield 3.6%. If the pure expectations theory is correct,
One-year Treasury securities yield 4%. The market anticipates that 1-year from now 1-year Treasury securities will yield 3.6%. If the pure expectations theory is correct, what should be the yield today for 2-year Treasury securities? Write your answer as a percentage, i.e. for example write 8% as 8.
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
