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Assume the pure expectations hypothesis (or theory) holds and you observe the following Treasury bond rates. What is the expected one-year Treasury yield two years
Assume the pure expectations hypothesis (or theory) holds and you observe the following Treasury bond rates. What is the expected one-year Treasury yield two years from today?
Years to Maturity | Yield |
1 | 2.0% |
2 | 3.2% |
3 | 4.0% |
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