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Suppose 1 - year Treasury bonds yield 4 . 0 0 % while 2 - year T - bonds yield 5 . 1 0 %
Suppose year Treasury bonds yield while year Tbonds yield Assuming the pure expectations theory is correct, and thus the maturity risk premium for Tbonds is zero, what is the yield on a year Tbond expected to be one year from now?Round the intermediate calculations to decimal places and final answer to decimal places.
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