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Following are the yield on selected Treasury securities: Maturity Yeild 1 year 5.0% 2 year 5.5% 3 year 6.0% 4 year 5.5% Using the expectations

Following are the yield on selected Treasury securities:

Maturity Yeild
1 year 5.0%
2 year 5.5%
3 year 6.0%
4 year 5.5%

Using the expectations theory, compute the expected interest rates (yields) for each security one year from now. What will the rates be two years from today and three years from today?

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