You expect one-year nominal interest rates to be 2.1%,4.4%, and 5.5% in each of the next three years, respectively. What rate do you expect to show up on the yield curve as the 3 year rate? Report your answer as an annual rate in decimal format and show four decimal places. For example, if your answer is 5.3585 per year, enter .0535

You expect one year nominal interest rates to be 1.7%,4.2%, and 2.5% in each of the next three years, respectively. What rate do you expect to show up on the yield curve as the 2-year rate? Report your answer as an annual rate in decimal format and show four decimal places. For example, if your answer is 5.35% per year enter 0535 .

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To calculate the expected 3year rate on the yield curve we can take the geometric average of the exp... View the full answer