Business
Business, 25.11.2021 06:40, peep372

The existing or current one-, two-, and three-year zero coupon Treasury security rates were as follows: 1R1 = 0.80 percent 1R2 = 1.26 percent 1R3 = 1.85 percent Using the unbiased expectations theory, what would the one-year forward rates on zero coupon Treasury bonds be for two and three years, respectively? A. Two years = 2.14, three years =2.56 percent. B. Two years = 2.25 percent, three years = 4.10 percent C. Two years = 3.65 percent, three years = 2.12 percent D. Two years = 1.72 percent, three years = 3.04 percent

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