What is the cointegrating coefficient

Reference no: EM131444741

Question: One version of the expectations theory of the term structure of interest rates holds that a long-term rate equals the average of the expected values of short-term interest rates into the future, plus a term premium that is 1(0). Specifically, let Rkt denote a k-period interest rate, let R1t denote a one-period interest rate, and let et denote an I(0) term premium. Then

Reference no: EM131444741

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