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Many investors will use the expectations theory to develop their yield curve framework. If 2-year Treasury securities are currently trading at 5%, and 1-year treasury

Many investors will use the expectations theory to develop their yield curve framework. If 2-year Treasury securities are currently trading at 5%, and 1-year treasury securities are currently trading at 2.5%,what will be the 1-year treasury interest rate 1 year from now?

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