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Author Question: Assume that the expectations theory holds. The yield on a 1-year bond is 6% and the yield on a ... (Read 81 times)

mikaylakyoung

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on: Apr 25, 2021

Question 1

Assume that the expectations theory holds. The yield on a 1-year bond is 6% and the expected future spot rate (next year) is 8%. What is the yield on the 2-year bond?
◦ 6.5%
◦ 7.0%
◦ 7.25%
◦ 7.5%

Question 2

Assume that the expectations theory holds. The yield on a 1-year bond is 6% and the yield on a 2-year bond is 5.5%. What is the expected future spot rate (next year)?
◦ 5%
◦ 5.25%
◦ 5.5%
◦ 5.75%
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Marked as best answer by mikaylakyoung on Apr 25, 2021

mjbamaung

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mikaylakyoung

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

Bigfoot1984

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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