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The yield on a one - year Treasury security is 5 . 1 5 0 0 % , and the two - year Treasury security

The yield on a one-year Treasury security is 5.1500%, and the two-year Treasury security has a 6.1800% 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.)
6.1371%
7.2201%
8.2309%
9.1695%
Recall that on a one-year Treasury security the yield is 5.1500% and 6.1800% 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 0.2%. What is the markets estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
5.794%
8.657%
7.7708%
6.8165%
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.)
6.45%
7.10%
6.69%
6.61%

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