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4) (2 pts) If the Yield on a one-year Treasury STRIP is 1.5% today and the Yield on a two-year Treasury STRIP is 1.7% today,

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4) (2 pts) If the Yield on a one-year Treasury STRIP is 1.5% today and the Yield on a two-year Treasury STRIP is 1.7% today, according to the pure expectations theory, what is the expected rate on a 1 year security, one year from now? % The one year rate next years is expected to be

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