10. You observe the following yield curve for Treasury securities: Maturity 1 Year 2 Years 3 Years 4 Years 5 Years Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 3-year securities, 2 year from today? O 8.2% O 7.0% O 7.3% Yield 2.90% 4.30% 5.20% 5.50% 6.10% 0 7.6%

You observe the following yleld curve for Treasury securitles: Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 3 -year securities, 2 year from today? 7.9% 8.2% 7.0% 7.3% 7.6%