Question

The current one year T-bill rate is 5.2% and the two year rate is 6%. If...

The current one year T-bill rate is 5.2% and the two year rate is 6%. If the 1 year forward rate one year from today is 6.2%, would you prefer to buy a 2 year t-note or two 1 year t-bills?

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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