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QUESTION
The Wall Street Journal reports that the rate on 3-year Treasury securities is 1.80 percent and the rate on 5-year Treasury securities is 2.75...
The Wall Street Journal reports that the rate on 3-year Treasury securities is 1.80 percent and the rate on 5-year Treasury securities is 2.75 percent. According to the unbiased expectations hypothesis, what does the market expect the 2-year Treasury rate to be three years from today, E(3r2)?
