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Business, 19.07.2021 22:30 Bearboy5957

Suppose we observe the following rates: 1R1 = 8%, 1R2 = 10%. If the unbiased expectations theory of the term structure of interest rates holds, what is the one-year interest rate expected one year from now, E(2r1)?

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Suppose we observe the following rates: 1R1 = 8%, 1R2 = 10%. If the unbiased expectations theory of...
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