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(PEH) Use the pure expectations hypothesis (PEH) to find a one-year interest rate expected three years from now (r3,4) if the following rates are known
(PEH) Use the pure expectations hypothesis (PEH) to find a one-year interest rate expected three years from now (r3,4) if the following rates are known or have been estimated: R1 = 5.43%, R4 = 6.33%, r1,2 = 5.83%, and r2,3 = 7.35%. Record the answer in % to the nearest 0.01%, drop the % symbol. E.g., if your answer is 7.355%, record it as 7.36. ______________________________.
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