Given the following term structure and assuming the unbiased…
Given the following term structure and assuming the unbiased expectation theory holds, answer the following questions (round to the nearest .000001 or 6 decimals): Term Structure of Treasury Securities Year Yield % 1 3.0 2 3.4 3 3.6 4 3.9 5 3.2 6 4.4 a. What is the 5-year rate 1 years from today? b. What is the 2-year rate 3 years from today?
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