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4. Problem 6.07 Click here to read the eBook: Using the Yield Curve to Estimate Future Interest Rates EXPECTATIONS THEORY One year Treasury securities yield

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4. Problem 6.07 Click here to read the eBook: Using the Yield Curve to Estimate Future Interest Rates EXPECTATIONS THEORY One year Treasury securities yield 2.6%. The market anticipates hat 1 year rom now 1-year Treasury securities wil yield 6% If the pure expectations theory correct what is the yield today or 2-year Treasury securities? Calculate the yield using a geometn average, Do not round your intermediate cakulations, Round your answer to two decimal places

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