If there is a maturity risk then the Expectations Theory does not apply or is not valid. A one-year Treasury security has a yield of 4.00% and a two-year Treasury security has a yield of 4.80%. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.4%. Make .4 a decimal by moving the decimal point two places to the left. What is the market's estimate of the one-year Treasury rate one year from now? (1+ this year 1 year rate )(1+ next year s s year rate )= p 208 4.080% 5.472% 4.800% 6.096%