A recent edition of The Wall Street Journal reported interest rates of 1.25 percent, 1.60 percent, 1.98

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A recent edition of The Wall Street Journal reported interest rates of 1.25 percent, 1.60 percent, 1.98 percent, and 2.25 percent for three-year, four-year, five-year, and six-year Treasury security yields, respectively, According to the unbiased expectation theory of the term structure of interest rates, what are the expected one-year forward rates for years 4, 5, and 6?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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