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Interest rates on 4-year Treasury securities are currently 6.5 percent, while 6- year Treasury securities yield 7 percent. If the pure expectations theory is correct,
Interest rates on 4-year Treasury securities are currently 6.5 percent, while 6- year Treasury securities yield 7 percent. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? None o 80% ..15% o 6.5% o 5.5%
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