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QUESTION 24 You can observe the following Treasury yields: Maturity Yield 1 year 3.9% 2 years 4.5 3 years 4.7 4 years 4.9 5 years
QUESTION 24 You can observe the following Treasury yields: Maturity Yield 1 year 3.9% 2 years 4.5 3 years 4.7 4 years 4.9 5 years 5.3 If the pure expectations theory holds, what does the market expect will be the interest rate on two-year securities, three years from now
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