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A certificate of deposit (CD) for two years will have the same yield as a CD for one year followed by an investment in another
A certificate of deposit (CD) for two years will have the same yield as a CD for one year followed by an investment in another one-year CD after one year rue O False The yield on a one-year Treasury security is 4.000096, and the two-year Treasury security has a 6.0000% 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? O 10.2108% 9165696 O 6.834096 8.0400% Recall that on a one-year Treasury security the yield is 4.0000% and 6.0000% 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 0.4500%. What is the market's estimate of the one-year Treasury rate one year from now? O 9.055090 O 7130096 o 8.1280% O 6.061096 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? 6.45% 6.53% 0 7.10% 0 5.46%
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