On March 11, 20xx, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows 181 2.16%, 1822.30, 183 - 2.62%, 184-2.73% Using the unbiased expectations theory, calculate the one-year forward rates on zero-coupon Treasury bonds for years two, three, and four as of March 11, 20XX. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. (e.g., 32.16))
On March 11, 20xx, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows 181 2.16%, 1822.30, 183 - 2.62%, 184-2.73% Using the unbiased expectations theory, calculate the one-year forward rates on zero-coupon Treasury bonds for years two, three, and four as of March 11, 20XX. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. (e.g., 32.16))
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 2EP
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Transcribed Image Text:Problem 2-19 (LG 2-8)
On March 11, 20XX, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates
were as follows
181-2.168, 1822.30, 132.62%, 184 - 2.73%
Using the unbiased expectations theory, calculate the one-year forward rates on zero-coupon Treasury bonds for years two, three, and
four as of March 11, 20XX. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. (e.g..
32.16))
Year 2
Year 3
Year 4
One-Year
Forward Rates
%
%
%
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