Assume the current interest rate on a 1 year Treasury bond( 1 R 1 )is 4 70 percent, the current rate on a 2 year Treasury bond ( 1 R 2 ) is 5 45 percent, and the current rate on a 3 year Treasury bond( 1 R 3 )is 6 70 percent If the unbiased expectations theory of the term structure of interest rate...

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Assume the current interest rate on a 1-year Treasury bond( 1 R 1 )is 4.70 percent, the

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Assume the current interest rate on a 1-year Treasury bond(₁R₁)is 4.70 percent, the current rate on a 2-year Treasury bond (₁R₂) is 5.45 percent, and the current rate on a 3-year Treasury bond(₁R₃)is 6.70 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the 1-year forward rate expected on Treasury bills during year 3,₃f₁?

Posted Date: May 17, 2024 08:04 PM

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Assume the current interest rate on a 1-year Treasury bond( 1 R 1 )is 4.70 percent, the

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