Assume the unbiased expectations theory is true the current


Question: Assume the unbiased expectations theory is true. The current, 1-year Treasury yield is 4%. Suppose the market expects that the 1-year Treasury yield will be 7% in one year's time. What is the current 2-year Treasury yield? (Nearest tenth of a percent)

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Finance Basics: Assume the unbiased expectations theory is true the current
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