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Maturity Yield: 1 year - 3.0% 2 years - 4.0% 5 years - 5.0% 1 0 years- 6.0% 30 years - 7.0% If PEH holds,
Maturity Yield:
1 year - 3.0%
2 years - 4.0%
5 years - 5.0%
10 years- 6.0%
30 years - 7.0%
If PEH holds, what does the market expect will be the interest rate on one-year securities, one year from now? Three-year securities, two years from now?
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