Question
Unbiased Expectations Theory One-year Treasury bills currently earn 5.35 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.50
Unbiased Expectations Theory One-year Treasury bills currently earn 5.35 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.50 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?
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5.5000%
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5.4250%
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10.8500%
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5.3500%
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Principles Of Commodity Economics And Finance
Authors: Daniel P. Ahn
1st Edition
0262038374, 9780262038379
