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Here are todays Treasury bond rates. Time to Maturity Yield 1-year 3.0% 2-year 3.5% 3-year 5.0% What is the expected 2-year Treasury bond rate a

Here are todays Treasury bond rates.

Time to Maturity Yield

1-year 3.0%

2-year 3.5%

3-year 5.0%

What is the expected 2-year Treasury bond rate a year from today assuming the pure expectations theory is correct? a. 4.0% b. 3.5% c. 6.0% d. 5.0% e. 3.0%

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