Analysts have forecasted short-term, one-year interest rates over the next 4 years to be 2.5%, 8%, 11%, and 5.5%, respec
Posted: Sun May 29, 2022 6:14 pm
Analysts have forecasted short-term, one-year interest rates
over the next 4 years to be 2.5%, 8%, 11%, and 5.5%, respectively.
According to expectations theory, the yield on a discount bond with
a three year maturity should be ____ and yield on bond with a four
year maturity should be ____.
7.17%; 6.75
7.17%; 6.45%
7.35%; 6.75%
7.35%; 6.45%
over the next 4 years to be 2.5%, 8%, 11%, and 5.5%, respectively.
According to expectations theory, the yield on a discount bond with
a three year maturity should be ____ and yield on bond with a four
year maturity should be ____.
7.17%; 6.75
7.17%; 6.45%
7.35%; 6.75%
7.35%; 6.45%