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A 2-year treasury security offers a return of 6.2%, and a 5-year TS offers a 6.7% return. Assuming the Pure Expectations Theory holds, what is
A 2-year treasury security offers a return of 6.2%, and a 5-year TS offers a 6.7% return. Assuming the Pure Expectations Theory holds, what is the rate of return for a 3-year TS, 2 years from now?
a) 7.02%
b) 7.03%
c) 6.85%
d) 6.92%
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