Suppose that the current yield on a twoyear Treasury note is 1.20 percent and the yield on
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Suppose that the current yield on a two‐year Treasury note is 1.20 percent and the yield on a three‐year note is 1.44 percent. What is the implicit one‐year forward rate for two years ahead? Why is it higher than 1.44 percent?
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Related Book For
Financial Markets Banking And Monetary Policy
ISBN: 9781118872239
1st Edition
Authors: Thomas D. Simpson
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