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You find an old copy of the Wall Street Journal and see the following Yield Curve published showing rates from: February 1, 2021. TERM (Years)
You find an old copy of the Wall Street Journal and see the following Yield Curve published showing rates from: February 1, 2021. TERM (Years) RATE (%) 0.0833 0.1667 0.25 0.5 1 2. 35 7 10 20 30 0.06% 0.07% 0.07% 0.08% 0.08% 0.11% 0.17% 0.42% 0.76% 1.09% 1.66% 1.84% RATE (%) 2.00% 1.50% 1.00% 0.50% 0.00% 5 10 15 20 25 30 35 Based on the information above (and this really nifty graph) apply the expectations theory and tell me what the 10 year rate should be 10 years from now. Remember to convert your percentages to decimals (by dividing by 100), and be sure you have enough digits showing on your calculators. State your answer AS A PERCENTAGE (so take whatever decimal answer you get and multiply by 100 if using a calculator... or just format the cell to give you a decimal answer if using Excel) to TWO DECIMAL PLACES - do not enter the % symbol Example: 0.041945 = 4.19% and you would type in 4.19
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