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The 1-year interest rate is 4.5%. The 2-year interest rate is 5.5%. The interest rate for a 3-year security is 6.5%. According to the Pure

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The 1-year interest rate is 4.5%. The 2-year interest rate is 5.5%. The interest rate for a 3-year security is 6.5%. According to the Pure Expectations Theory, the 1-year interest rate 2 years from now must be equal to 9.53% O 8.53% 6.53% 7.53%

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