Ch 06: Assignment - Interest Rates The yield on a one-year Treasury security is 46900%, and the two-year Treasury security has a 5.6280% 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? (Note: Do not round your intermediate calculations.) 6.5744% 5.5882% 8.3495 7.4948% Recall that on a one-year Treasury security the yield is 4.6900% and 5.6200% on a two-year Treasury security Support the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.4%. What is the market's estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.) 6.5763 7.32624 ory 5.76079 4.90344 Suppose the yield on a two-year Treasury security is 5.83 and the yield on a five yearTreasury 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? (Note: Do not round your intermediate calculations.) 5.46% 6539 7.104 6.454