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One-year Treasury securities yield 5.5 percent. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.5 percent. If the pure expectations
One-year Treasury securities yield 5.5 percent. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.5 percent. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? 6.5% 4.5% 3.5% 7.5% 6.0%
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