The current one-year T-bill rate is 40 percent and the expected one-year rate 12 months from now

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The current one-year T-bill rate is 40 percent and the expected one-year rate 12 months from now is 1.10 percent. According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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