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calculating interest rates sume the current interest rate on a 1-year Treasury bond...

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calculating interest rates

sume the current interest rate on a 1-year Treasury bond (R) is 6.50 percent, the current rate on a 2-year Treasury bond GR2) is 725 percent, and the current rate on a 3-year Treasury bond GR) is 8.50 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the 1-year forward rate expected on Treasury bills during year 3, 3f,? (Do not round intermediate calculations. Round your answer to 2 decimal places.) R, ,R R, 6.50% 7.25% 8.50% Complete the following analysis. Do not hard code values in your calculations. zfi of Sheet1 NH

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