Question: how can I solve for B? Quantitative Problem: Today, interest rates on 1-year T-bonds yield 1.3%, interest rates on 2-year T-bonds yield 2.4%, and interest

 how can I solve for B? Quantitative Problem: Today, interest rates

how can I solve for B?

Quantitative Problem: Today, interest rates on 1-year T-bonds yield 1.3%, interest rates on 2-year T-bonds yield 2.4%, and interest rates on 3-year T-bonds yield 3.6%. a. If the pure expectations theory is correct, what is the yield on 1-year T-bonds one year from now? Be sure to use a geometric average in your calculations. Do not round intermediate calculations. Roun your answer to four decimal places. 3.5119 % b. If the pure expectations theory is correct, what is the yield on 2-year T-bonds one year from now? Be sure to use a geometric average in your calculations. Do not round intermediate calculations, Roun your answer to four decimal places. c. If the pure expectatides theory is correct, what is the yield on 1-year T-bonds two years from now? Be sure to use a geometric average in your calculations. Do not round intermediate calculations. Roun your answer to four decimal places. 6.0424 % Type here to search HIBA

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