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Assume that, currently, 4 - year Treasury securities yield 5 . 4 percent, 6 - year Treasury securities yield 5 . 8 percent, and 1
Assume that, currently, year Treasury securities yield percent,
year Treasury securities yield percent, and year Treasury
securities yield percent. If the expectations theory is correct,
determine what the market expects the annual yield will be on
year Treasury securities six years from today.
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