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In the market today (t=0, spot rates), you observe the following yields on Treasury securities: Assume that the expectations theory holds. What does the market
In the market today (t=0, spot rates), you observe the following yields on Treasury securities: Assume that the expectations theory holds. What does the market expect the yield on 3-year Treasury securities to be five years from today? Maturity 2 years 5 years 8 years Yield 6.43 5.9 6.0 9.00% 5.70% 7.27% 6.17% 5.50%
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