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 2.70% 6.20 7.20 9.70

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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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
2.70%
6.20
7.20
9.70
%
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 2.70% 6.20 7.20 9.70 %
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