Question
The Wall Street Journal reports that the rate on 7-year Treasury securities is 1.70 percent and the rate on 9-year Treasury securities is 2.65 percent.
The Wall Street Journal reports that the rate on 7-year Treasury securities is 1.70 percent and the rate on 9-year Treasury securities is 2.65 percent. According to the unbiased expectations theory, what does the market expect the 2-year Treasury rate to be seven years from today, E(7r2)?
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Finance At The Threshold
Authors: Christopher Houghton Budd
1st Edition
0566092115, 978-0566092114
