The Wall Street Journal reports that the rate on 3-year Treasury securities is 1.20 percent and the

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The Wall Street Journal reports that the rate on 3-year Treasury securities is 1.20 percent and the rate on 5-year Treasury securities is 2.15 percent. According to the unbiased expectations theories, what does the market expect the 2-year Treasury rate to be three years from today, E(3r2)?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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