Using the unbiased expectations theory

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Reference no: EM131359025

Forecasting Interest Rates On May 23, 20XX, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows:

1R1 = 6.10%, 1R2 = 6.60%, 1R3 = 7.10%, 1R4 = 7.30%

Using the unbiased expectations theory, what is the one-year forward rate on zero-coupon Treasury bonds for year four as of May 23, 20XX.

Reference no: EM131359025

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