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Consider the following data obtained on Treasury STRIPS of various maturities. N Yield 1 1.25% 2 1.85% 3 2.35% According to the pure expectations hypothesis,

Consider the following data obtained on Treasury STRIPS of various maturities. N Yield 1 1.25% 2 1.85% 3 2.35% According to the pure expectations hypothesis, the rate of return one would expect to earn over a 3-year period in an investment in any of the above securities would be A. the same, regardless of the maturity B. greater the longer the maturity C. less for shorter maturities D. greater for shorter maturities

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