On March 11, 20xx, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows 181 2.16%, 1822.30, 183 - 2.62%, 184-2.73% Using the unbiased expectations theory, calculate the one-year forward rates on zero-coupon Treasury bonds for years two, three, and four as of March 11, 20XX. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. (e.g., 32.16))
On March 11, 20xx, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows 181 2.16%, 1822.30, 183 - 2.62%, 184-2.73% Using the unbiased expectations theory, calculate the one-year forward rates on zero-coupon Treasury bonds for years two, three, and four as of March 11, 20XX. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. (e.g., 32.16))
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 11PROB
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