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What would the one year forward rates on zero coupon

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Reference no: EM133009704

The existing or current one- two- and three-year zero coupon treasury security rates were as follows:

1R1 = .80 %
1R2 = 1.26 %
1R3 = 1.85 %

Problem 1: Using the unbiased expectations theory, what would the one year Forward rates on zero coupon treasury bonds be for two and three years, respectively?

Reference no: EM133009704

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