You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory,

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You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the 1-year forward rate for the period beginning one year from today, 2f1?
Maturity Yield
One day .......... 2.00%
One year .......... 5.50
Two years .......... 6.50
Three years ........ 9.00

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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