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Title: The current rate of return on a one-year U.S. Government security is 3%. The rate of return on a ... Post by: borteleto on Jul 4, 2018 The current rate of return on a one-year U.S. Government security is 3%. The rate of return on a two-year U.S. Government security is 5%. According to the expectations theory, what is the return on a one-year U.S. Government security purchased one year from today?
Title: The current rate of return on a one-year U.S. Government security is 3%. The rate of return on a ... Post by: guzman on Jul 4, 2018 $1,000 1.03 = $1,030 at the end of year one $1,000 (1.05)2 = $1,102.50 at the end of two years $1,102.50 - $1,030 = $72.50 interest needed in year 2 $72.50/$1,030 = 7.04% Title: The current rate of return on a one-year U.S. Government security is 3%. The rate of return on a ... Post by: borteleto on Jul 4, 2018 :heavy_check_mark:
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