Question: Problem 6 - 1 3 Unbiased Expectations Theory ( LG 6 - 7 ) Suppose we observe the following rates: ? 1 R 1 =
Problem Unbiased Expectations Theory LG
Suppose we observe the following rates: If the unbiased expectations theory of the term structure of interest rates holds, what is the year interest rate expected one year from now,
Note: Do not round intermediate calculations. Round your percentage answer to decimal places ie should be entered as
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