According to the unbiased expectations hypotheses

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1. Yesterday, you entered into a futures contract to sell €75,000 at $1.79 per €. Your initial performance bond is $1,500 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted?

2. The Wall Street Journal reports that the rate on four-year Treasury securities is 1.1 percent and the rate on five-year Treasury securities is 2.2 percent. According to the unbiased expectations hypotheses, what does the market expect the one-year Treasury rate to be four years from today, E(5r1)? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131983971

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