Current interest rates on bonds of different maturities look like this:
Maturity Rate
1-year 2.50%
2-year 2.75%
3-year 3.00%
If the expectations hypothesis is true,what interest rate would you expect a 2-year bond to pay,1 year from now?

Question

Quizplus · Accepted Answer

The Answer of Current interest rates on bonds of different maturities look like this:
Maturity Rate
1-year 2.50%
2-year 2.75%
3-year 3.00%
If the expectations hypothesis is true,what interest rate would you expect a 2-year bond to pay,1 year from now?

Current Interest Rates on Bonds of Different Maturities Look Like