If the unbiased expectations theory is correct what should


One-year Treasury bills currently earn 2.55 percent. You expected that one year from now, one-year Treasury bill rates will increase to 2.85 percent and that two years from now, one-year Treasury bill rates will increase to 3.15 percent. If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities?

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the unbiased expectations theory is correct what should
Reference No:- TGS02826670

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)