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September 19, 2014

Homework Help: corporate finance.

Posted by terra on Wednesday, September 23, 2009 at 8:32pm.

Suppose you observe the following
Maturity 1 year Yield 6.0%
Maturity 2 year Yield 6.2%
Maturity 3 years Yield 6.4%
Maturity 4 years Yield 6.5%
Maturity 5 years Yield 6.5%

What does the market expect will be teh interest rate on 1yr. securities 1 year from now? What does teh market expect will be the interest rate on 3yr. securiites 2 years from now?

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