Question:

9 Suppose the interest rate on a 1 year T bond is 4 0 and

Last updated: 10/28/2023

9 Suppose the interest rate on a 1 year T bond is 4 0 and

9 Suppose the interest rate on a 1 year T bond is 4 0 and that on a 2 year T bill is 7 0 Assuming the pure expectations theory is correct what is the market s forecast for 1 year rate 1 year from now