You note the following yield curve in The Wall Street Journal. According to the unbiased expectations hypothesis, what is the one-year forward rate for the period beginning one year from today, ₂f₁?
$\begin{array}{l}\begin{array} { l l } \text {Maturity }&\text {Yield}\\\text {One day }&2.00\%\\\text {One year }&6.00\\\text {Two years }&7.50\\\text {three years }&9.00\\\end{array}\end{array}$

Question

You note the following yield curve in The Wall Street Journal. According to the unbiased expectations hypothesis, what is the one-year forward rate for the period beginning one year from today, ₂f₁?

\begin{array}{l}\begin{array} { l l } \text {Maturity }&\text {Yield}\\\text {One day }&2.00\%\\\text {One year }&6.00\\\text {Two years }&7.50\\\text {three years }&9.00\\\end{array}\end{array}

Quizplus · Accepted Answer

The Answer of You note the following yield curve in The Wall Street Journal. According to the unbiased expectations hypothesis, what is the one-year forward rate for the period beginning one year from today, ₂f₁? $$\begin{array}{l} \begin{array} { l l } \text {Maturity }&\text {Yield}\ \text {One day }&2.00\%\ \text {One year }&6.00\ \text {Two years }&7.50\ \text {three years }&9.00\ \end{array} \end{array}$$

You Note the Following Yield Curve in the Wall Street