Question
The current one-year Treasury bill rate is 3.48% and the expected one-year rate 12 months from now is 4.23%. According to the unbiased expectations theory,
The current one-year Treasury bill rate is 3.48% and the expected one-year rate 12 months from now is 4.23%. According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security?
Do not round intermediate calculations. Round your percentage answers to 2 decimal places. Do NOT enter the percentage (%) sign (e.g., if your result is 1.23%, enter 1.23).
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Financial Management And Policy
Authors: James C. Van Horne
11th Edition
0137512236, 9780137512232
