Under pure expectation theory, what would be the 4-year rate in 1 years time (jfs)? The...

 

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Under pure expectation theory, what would be the 4-year rate in 1 years time (jfs)? The current rates are as follows: Year 1 2 3 45 Rate 6.39% 6.41% 6.40% 6.38% 6.37% Under pure expectation theory, what would be the 4-year rate in 1 years time (jfs)? The current rates are as follows: Year 1 2 3 45 Rate 6.39% 6.41% 6.40% 6.38% 6.37%

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Under the pure expectation theory the forward rate in one years time fs can be calculate... View the full answer