A one year zero coupon treasury bond yields 4.6% and a two year zero coupon treasury yields 4.48%. What is the expected 1 year interest rate 1 year from now, assuming no-arbitrage pricing and no liquidity premium? Enter answer in percents to 2 decimal places. For example, enter 14.15 for 14.15%.

Answer rating: 100% (QA)

According to the noarbitrage pricing principle the expected 1year interest rate ... View the full answer