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Interest rates on 4-year Treasury securities are currently 6.0%, while 6-year Treasury securities yield 7.85%. If the pure expectations theory is correct, what does
Interest rates on 4-year Treasury securities are currently 6.0%, while 6-year Treasury securities yield 7.85%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. %
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
14th edition
1285867971, 978-1305480742, 1305480740, 978-0357686393, 978-1285867977
