WSJ newspaper reports the risk-free interest rates for the next four years as follows: 1-year: 0.13%, 2-year: 0.48%; 3-y
Posted: Thu May 19, 2022 7:09 am
WSJ newspaper reports the risk-free interest rates for the next four years as follows: 1-year: 0.13%, 2-year: 0.48%; 3-year: 0.79%; 4-year: 0.9%. Using expectations theory and geometric averages, What is the forecasted 1-year risk-free rate 2 years from now? Enter your answer in the following format: 0.1234 Hint Answer is between 0.0124 and 0.0155