The pure expectations theory assumes that investors do not consider long-term bonds to be riskier than short-term bonds True False The yield on a one-year Treasury security is 4.000096, and the two-year Treasury security has a 5.4000% yield Assuming that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate one year from now? o 5.7970% 6.8200% 8.6614% 777 48% Recall that on a one-year Treasury security the yield is 4.0000% and 5.4000% on a two-year Treasury security Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.3000%. what is the market's estimate of the one-year Treasury rate one year from now? O 6.2100% O 7.0790% O 5.2790% 7.8870% Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20% Assuming that the pure expectations theory is correct, what is the market's estimate of the three-year Treasury rate two years from now? 6.53% 6.45% 6.69% 5.46%