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The Wall Street Journal reports that the rate on two-year Treasury securities is 4.75 percent and the rate on three-year Treasury securities is 5.95 percent.
The Wall Street Journal reports that the rate on two-year Treasury securities is 4.75 percent and the rate on three-year Treasury securities is 5.95 percent. Thus, according to the unbiased expectations hypotheses, the market expects the one-year Treasury rate to be approximately _________ two years from today.
Select one:
A. 7.15 percent
B. 13.10 percent
C. 1.20 percent
D. 8.35 percent
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