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c. Now, suppose that the yield on a 2-year Treasury security is 5.0%, and the yield on a 5-year Treasury security is 5.20%. Assuming that
c. Now, suppose that the yield on a 2-year Treasury security is 5.0%, and the yield on a 5-year Treasury security is 5.20%. Assuming that the pure expectation theory is correct, what is the markets estimate of the 3-year Treasury security rate two years from now?
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