Suppose that you observed the following term structure for Treasury securities Maturity Yield 1 year 6.0% 2 years 6.2% 3 years 16.4% 14 years 16.5% 5 years 16.5% Assume that the pure expectations theory of the term structure is correct What does the market expect will be the interest rate on 2-year securities3 years from now? 0 6.4% 67% 65% 0 6.85% Next