Question: The Wall Street Journal reports that the current rate on 5-year Treasury bonds is 2.45 percent and on 10-year Treasury bonds is 4.55 percent. Assume
The Wall Street Journal reports that the current rate on 5-year Treasury bonds is 2.45 percent and on 10-year Treasury bonds is 4.55 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 5-year Treasury bond purchased five years from today, Esrs). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected rate
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