One-year treasury bills currently earn 0.39 percent. One year from now, you expect one-year treasury rates to
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One-year treasury bills currently earn 0.39 percent. One year from now, you expect one-year treasury rates to rise to 0.42 percent. If the neutral expectations theory is correct, what should the current rate of two-year Treasury bills be? (Do not round up intermediate calculations. Round your answer to 2 decimal places. (eg 32.16))
Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
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