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The interest rate on year Trausury security 30% and that on a 2 year Treasury security is 5.30%. Assuming the pure expectations theory is correct,

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The interest rate on year Trausury security 30% and that on a 2 year Treasury security is 5.30%. Assuming the pure expectations theory is correct, what is the market's forecast for 1 year Treasury security rates l year from now? 07348 62154 0 6.82% 07.788 O 5.93%

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