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The yield on a one - year Treasury security is 5 . 3 8 0 0 % , and the two - year Treasury security

The yield on a one-year Treasury security is 5.3800%, and the two-year Treasury security has a 7.2630% yield. Assuming that the pure expectations theory is correct, what is the markets estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
9.1796%
10.4647%
11.6581%
7.8027%
Recall that on a one-year Treasury security the yield is 5.3800% and 7.2630% 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 0.4%. What is the markets estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
8.3669%
9.5383%
10.626%
7.1119%
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 markets estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.)
7.10%
6.61%
6.69%
6.45%

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