Details of this Paper

ECO - Suppose that "0" coupon US treasuries due to mature

Description

solution


Question

Question;Suppose that "0" coupon US treasuries due to mature in 1 year were yielding 3% while 0 coupon US treasuries maturing in 2 years were yielding 3.8%. if you were a risk neutral investor who wanted to choose between these bonds the one that offered you the highest expected rate of returh after 1 year what would you have to expect about 1 year treasury yields 1 year from now in order to pick todays 1 year bond explain your answer and show your calculations.

 

Paper#57632 | Written in 18-Jul-2015

Price : $22
SiteLock