Suppose we observe the following rates the one year rate is, Ask an Expert

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Suppose we observe the following rates; The one year rate is 2.95%. The two-year rate is 3.36%. If the unbiased expectations theory holds, what is the one-year interest rate (in % format) expected in one year from now? (answer in % format to 2 decimal places, x.xx with no % needed.)

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Financial Management, Finance

Category:- Financial Management
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