Post a New Question

Finance

posted by .

Can anyone offer help to me by explaining how I can answer this question?

The current rate on 5-year T-Notes is 7% and the current rate on 10-year T-Notes is 9%. What should you expect the rate to be on 5-year T-Notes in 5 years?

I am not looking for the answer directly, just how I can figure it out. I was given an example in class, but cannot figure out how the instructor came up with the numbers.
Thanks

can you give the instructors example

can you give the instructors example

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.25, the market risk premium is 5.00%, and the risk-free rate …
  2. College Finance

    1.A recent edition of The Wall Street Journal reported interest rates of 10.75 percent, 11.10 percent, 11.48 percent, and 11.75 percent for 3-, 4-, 5-, and 6-year Treasury security yields, respectively. According to the unbiased expectation …
  3. Finance

    the dividends of the reisner company are expected to grow at an annual rate of 18 percent for the next 5 years, then at a rate of 12 percent each year for the next 4 years, and thereafter grow at a rate of 5 percent each year. if the …
  4. FINANCE

    3. Unbiased Expectations Theory One-year Treasury bills currently earn 5.50 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.75 percent. If the unbiased expectations theory is correct, what …
  5. FINANCE

    5. Forecasting Interest Rates Assume the current interest rate on a one-year Treasury bond (1R1) is 5.00 percent, the current rate on a two-year Treasury bond (1R2) is 5.75 percent, and the current rate on a three-year Treasury bond …
  6. FINANCE

    7. Forecasting interest rates Assume the current interest rate on a one-year Treasury bond (1R1) is 5.50 percent, the current rate on a two-year Treasury bond (1R2) is 5.95 percent, and the current rate on a three-year Treasury bond …
  7. FINANCE

    8. Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: 1R1 = 5 percent, E(2r1) = 6 percent, E(3r1) = …
  8. Need help by tonite Finance

    3. Unbiased Expectations Theory One-year Treasury bills currently earn 5.50 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.75 percent. If the unbiased expectations theory is correct, what …
  9. Econ

    The 1-year interest rate on Swiss francs is 5 percent and the dollar interest rate is 8 percent. (A) if the current $/SF spot rate is $0.60, what would you expect the spot rate to be in 1 year. (B) Suppose US policy changes and leads …
  10. Math (Dividend Growth Rate)

    I'm trying to figure out the annual dividend growth of a company in 30 years using the current annual dividend rate, and the 5 year growth rate. The formula is A= P(1+r)^t The current dividend Is $1.92 and the Five year dividend is …

More Similar Questions

Post a New Question