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One-year Treasury securities yield 4%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 5%. If the pure expectations theory is
One-year Treasury securities yield 4%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 5%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? (NOTE: write your answer in the format of x.xx%, for example, 2.35%)
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