Calculate the term premium according to term premium theory

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Yield curve Feb 2015

Refer to the yield curve above for February 2015. According to the expectations theory, what was the interest rate expected to be on a one-year Treasury security February 2016?

Yield curve Feb 2015

Refer to the yield curve above for February 2015. Suppose the yield on the 1-year Treasury is expected to be exactly the same in February 2016. Calculate the term premium according to the term premium theory.

Yield curve 11 1978

Refer to the yield curve for November 1978. Assume the term premium on a 2-year security is 1%. Calculate the expected interest rate on a one-year security one year in the future.

Reference no: EM13852685

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