The pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interest rates. Based on the pure expectations theory, is the following statement true or false? 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 5. 8400%, and the two-year Treasury security has a 7. 0100% 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? 6. 9615% 9. 3366% 8. 1900% 10. 4013%Recall that on a one-year Treasury security the yield is 5. 8400% and 7. 0100% 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. 4500%. What is the market's estimate of the one-year Treasury rate one year from now? 6. 1880% 9. 2460% 8. 2990% 7. 2800% 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? 7. 10% 6. 61% 6. 45% 5. 46%