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Unbiased Expectations Theory One-year Treasury bills currently earn 6.45 percent. You expect that one year from now, one-year Treasury bill rates will increase to
Unbiased Expectations Theory One-year Treasury bills currently earn 6.45 percent. You expect that one year from now, one-year Treasury bill rates will increase to 6.70 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?
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Microeconomics
Authors: David Laibson, John List
Global Edition 1st Edition
1292079576, 978-1292079578
