Business

Nicholas Whitehead

30 March, 06:36

The Wall Street Journal reports that the rate on four-year Treasury securities is 2.2 percent and the rate on five-year Treasury securities is 2.9 percent. According to the unbiased expectations hypotheses, what does the market expect the one-year Treasury rate to be four years from today, E (5r1) ? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e. g., 32.16))

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