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One-year Treasury securities yield 2.7 percent, 2-year Treasury securities yield 1.8 percent, and 3-year Treasury securities yield 2.4 percent. Assume that the expectations theory holds.
One-year Treasury securities yield 2.7 percent, 2-year Treasury securities yield 1.8 percent, and 3-year Treasury securities yield 2.4 percent. Assume that the expectations theory holds. What does the market expect will be the yield on 1-year Treasury securities two years from now? 3.80% 4.20% 4.4% 3.60% 4.00%
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