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A one-year Treasury security has a yield of 5.00% and a two-year Treasury security has a yield of 5.70%. Suppose the one-year security does not
A one-year Treasury security has a yield of 5.00% and a two-year Treasury security has a yield of 5.70%.
Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.3%.
What is the market's estimate of the one-year Treasury rate one year from now?
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