How Do You Calculate Unbiased Expectations Theory?
How Do You Calculate Unbiased Expectations Theory? To do the calculation, first add 1 to the two-year bond’s interest rate, which in this case gives us 1.1 (or 110%). Next, we take this result and square it: 1.1 squared gives us 1.21. The next step is to divide this number by the current year’s one-year