You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the 1-year forward rate for the period beginning one year from today, 2f1? (Round your answer to 2 decimal places.) Maturity One day One year Two years Three years Forward rate Yield 2.25% 5.75 6.75 9.25 %

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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am. 19.

You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the 1-year forward
rate for the period beginning one year from today, 2f1? (Round your answer to 2 decimal places.)
Maturity
One day
One year
Two years
Three years
Forward rate
Yield
2.25%
5.75
6.75
9.25
%
Transcribed Image Text:You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the 1-year forward rate for the period beginning one year from today, 2f1? (Round your answer to 2 decimal places.) Maturity One day One year Two years Three years Forward rate Yield 2.25% 5.75 6.75 9.25 %
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