Calculate using the market expectation theory a one-year


Assume: 8% current one-year bond

10% current 2-year bond rate

11% current 3-year bond rate

Calculate, using the market expectation theory, a) one-year bond rate 12 months from now b) two-year bond rate 12 months from now?

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Finance Basics: Calculate using the market expectation theory a one-year
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