Unbiased expectations theory

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Reference no: EM131863691

1. Unbiased Expectations Theory. One-year Treasury bills currently earn 1.30 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 1.50 percent. If the unbiased expectations theory is correct, what should the current rate be on 2-year Treasury securities.

2. Approximately how many years are needed to double a $500 investment when interest rates are 11.00 percent per year?

Reference no: EM131863691

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