Question: one year treasury bills yeild 6% while treasury notes with 2 year maturities yield 6.7%. If the espectations theory holds( that is ,the maturity risk
one year treasury bills yeild 6% while treasury notes with 2 year maturities yield 6.7%. If the espectations theory holds( that is ,the maturity risk premium is zero),what is the market 's forecast of what 1-year treasury bills will be yielding one year from now? Pleasev show all ofteh work so I can understand this.
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