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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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