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pls help will upvote asap! Question 7 (1 point) The current yield curve for treasuries is as follows: Maturity (years) YTM 1 0.5% 2 0.9%
pls help will upvote asap!
Question 7 (1 point) The current yield curve for treasuries is as follows: Maturity (years) YTM 1 0.5% 2 0.9% 3 0.95% Compute the forward rate for the third year. Enter your answer as a decimal, rounded to 4 decimal places. Your Answer: Answer Question 8 (1 point) (Continued from the previous question) If you believe in the liquidity preference theory, what is your best guess as to the 3rd year's short-term interest rate relative to the forward rate you computed in the previous question? higher than the forward rate. lower than the forward rate. same as the forward rate Step by Step Solution
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