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30. You observe the following yield curve for Treasury securities: Maturity 1 year 2 years 3 years 4 years 5 years Yield 6.2% 6.4 6.7

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30. You observe the following yield curve for Treasury securities: Maturity 1 year 2 years 3 years 4 years 5 years Yield 6.2% 6.4 6.7 6.9 7-1 Assume that the expectations theory is correct. What does the market expect the interest rate on 3-year securities to be 1 year from now? A. 6.90% B. 7.13% C. 6.70% D. 6.67% E. 7.50%

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