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A recent edition of The Wall Street Journal reported interest rates of 8.75 percent, 9.10 percent, 9.48 percent, and 9.75 percent for 3-, 4-, 5- and 6-year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of interest rates, wh are the expected 1-year forward rates for years 4, 5, and 6? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

A recent edition of The Wall Street Journal reported interest rates of 8.75 percent, 9.10 percent, 9.48 percent, and 9.75 percent for 3-, 4-, 5- and 6-year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of interest rates, wh are the expected 1-year forward rates for years 4, 5, and 6? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A recent edition of The Wall Street Journal reported interest rates of 8.75 percent, 9.10 percent, 9.48 percent, and 9.75 percent for 3-, 4-, 5-, and 6-year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of interest rates, what are the expected 1-year forward rates for years 4, 5, and 6? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Years Forward Rates 4 5 6 % % %
Transcribed Image Text:A recent edition of The Wall Street Journal reported interest rates of 8.75 percent, 9.10 percent, 9.48 percent, and 9.75 percent for 3-, 4-, 5-, and 6-year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of interest rates, what are the expected 1-year forward rates for years 4, 5, and 6? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Years Forward Rates 4 5 6 % % %
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