Question: chapter 6 question 5 You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the 1-year
chapter 6 question 5
You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the 1-year forward rate for the period beginning one year from today, 2f1? (Round your answer to 2 decimal places.)
| Maturity | Yield | ||
| One day | 2.25 | % | |
| One year | 5.75 | ||
| Two years | 6.75 | ||
| Three years | 9.25 | ||
| Forward rate | % |
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