We identify a common misconception that expected future changes in short-term interest rates predict corresponding … future changes in long-term interest rates. People forecast similar shapes for the paths of short and long rates over the …-term interest rates into the coarse category of “interest rates,” leading to overestimation of their comovement. We show that this …

interest rates by deriving the pricing of zero-coupon bonds, forward contracts, and futures contracts. We identify a necessary …

In this paper we decompose Turkish Lira interest rates into expected short rate and term premium components, using two …