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6 pts In today's market you observe the following yield curve for government securities: Maturity 1 year 2 years 3 years 4 years 3 years

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6 pts In today's market you observe the following yield curve for government securities: Maturity 1 year 2 years 3 years 4 years 3 years 6 years years 8 years 9 years 10 ye Yield 1.20% 1.25 1.30 1.40 1.55 1.75 2.00 2.30 2.70 3.20 Assume that the pure expectations hypothesis holds (i.e., the maturity risk premium = 0). What does the market expect will be the interest rate on 3-year securities four years from now? 0 2.52596 2.800% 03.150% 3.500% F 3.750%

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