Unbiased expectations hypothesis

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Reference no: EM1344409

The Wall Street Journal reports that the rate on 2-year Treasury securities is 2.10 percent and the rate on 4-year Treasury securities is 3.05 percent. According to the unbiased expectations hypothesis, what does the market expect the 2-year Treasury rate to be two years from today, E(2r2)?

Reference no: EM1344409

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