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31. Assume the pure expectations hypothesis (or theory) holds and you observe the following Treasury bond rates. Years to Maturity Yield 120% 3.2% 4.0% ry

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31. Assume the pure expectations hypothesis (or theory) holds and you observe the following Treasury bond rates. Years to Maturity Yield 120% 3.2% 4.0% ry yield two years from today? What is the expected one-year Tre A) 2.00% B) 6.18% C) 4.00% D) 5.62% E) 5.58%

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