Question
Suppose that the current 1-yr rate (1yr spot rate) and expected 1 yr Tbill rates over the following 3 years are as followed 1r1=2.87%,e(2r1) =
Suppose that the current 1-yr rate (1yr spot rate) and expected 1 yr Tbill rates over the following 3 years are as followed
1r1=2.87%,e(2r1) = 4.10%, E(3r1) = 4.6%, E(4r1)=6.10%
this is using unbiased expectations theory
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
