6. Pure expectations theory The pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interest rates. Based on the pure expectations theory, is the following statement true or false? The pure expectations theory assumes that a one-year bond purchased today will have the same return as a one-year bond purchased five years from now, False True The yield on a one-year Treasury security is 5.6100\%, and the two-year Treasury security has a 6.4150\% yield. Assuming that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate. caiculations.) 11.2945% 14.344% 12.8757% 9.6003% 9.6003% Recall that on a one-year Treasury security the yield is 5.6100% and 8.4150% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.35%. What is the market's estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calcilations.) 13.4328% 8.9904% 10.577% 12.0578% Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%, Assuming that the pure expectations theory is correct, what is the market's estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.) 6.69% 5.46% 7,10% 6.45%