The Wall Street Journal reports that the rate on 6-year Treasury securities is 1.95 percent and the rate on 8-year Treasury securities is 2.90 percent. According to the unbiased expectations hypothesis, what does the market expect the 2-year Treasury rate

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can someone please set this problem up so i can understand it please? typically in finance only.

 

The Wall Street Journal reports that the rate on 6-year Treasury securities is 1.95 percent and the rate on 8-year Treasury securities is 2.90 percent. According to the unbiased expectations hypothesis, what does the market expect the 2-year Treasury rate to be six years from today, E(6r2)? (Do not round intermediate calculations and round your answer to 2 decimal places.)

 

 

can i get help for this problem?

 

    • 14 years ago
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