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Interest rates on 4-year Treasury securities are currently 1.09%, while 7-year Treasury securities yield 1.72%. If the pure expectations theory is correct, what does the

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Interest rates on 4-year Treasury securities are currently 1.09%, while 7-year Treasury securities yield 1.72%. If the pure expectations theory is correct, what does the ma believe that 3-year Treasury securities will be yielding 4 years from now? [Pure Expectations Theory: A theory that states that the shape of the yield curve depends on investors' expectations about future interest rates.] 2.20 percent 2.57 percent 1.40 percent 3.87 percent 1.36 percent

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