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Suppose that the yield on a two-year Treasury security is 5.84%, and the yield on a five-ear Treasury security is 6.34%. Assuming that the pure

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Suppose that the yield on a two-year Treasury security is 5.84%, and the yield on a five-ear Treasury security is 6.34%. Assuming that the pure expectation theory is correct, what is the market's estimate of the three-year Treasury rate two years from now? The error margin will allow either arithmetic o geometric averaging on this question. Your answer should be between 5.58 and 7.98, with no special characters. You may round to 4 decimal places if you wish, but only 2 decimal places are necessary for a correct answer. 5pts D | Question 6 MacBook Ain

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