Question: A one year zero coupon treasury bond yields 3.26% and a two year zero coupon treasury yields 5.61%. What is the expected 1 year interest
A one year zero coupon treasury bond yields 3.26% and a two year zero coupon treasury yields 5.61%. What is the expected 1 year interest rate 1 year from now, assuming no-arbitrage pricing and no liquidity premium?
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