Business, 16.07.2019 06:50 denaw5779

Suppose 2-year treasury bonds yield 4.5%, while 1-year bonds yield 3%. r* is 1%, and the maturity risk premium is zero. using the expectations theory, what is the yield on a 1-year bond 1 year from now? calculate the yield using a geometric average.

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Suppose 2-year treasury bonds yield 4.5%, while 1-year bonds yield 3%. r* is 1%, and the maturity ri...

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