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One-year Treasury securities yield 7.6%, 2-year Treasury securities yield 7%, and 3-year Treasury securities yield 7.5%. Assume that the expectations theory holds. What does
One-year Treasury securities yield 7.6%, 2-year Treasury securities yield 7%, and 3-year Treasury securities yield 7.5%. Assume that the expectations theory holds. What does the market expect will be the yield on 1-year Treasury securities two years from now? 9.0% 8.0% 9.5% 10.0% 8.5%
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