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Discuss the unbiased expectations hypothesis

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Question: A recent edition of The Wall Street Journal reported interest rates of 6 percent, 6.35 percent, 6.65 percent, and 6.75 percent for three-year, four-year, five-year, and sixyear Treasury notes, respectively. According to the unbiased expectations hypothesis, what are the expected one-year rates for years 4, 5, and 6 (i.e., what are 4 f1 , 5 f1 , and 6 f1 )?

Reference no: EM131632186

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