Multiple Choice
The current yield on a 2-year Treasury note is 1.21 percent and that on a 3-year note is 1.70 percent. This means that the implicit 1-year forward rate in year 3 is
A) Equal to 1.21 percent
B) Above 1.70 percent
C) Equal to 1.70 percent
D) Below 1.21 percent
Correct Answer:
Verified
Correct Answer:
Verified
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