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The yield on a one-year Treasury security is 4.00% the two-year Treasury security has a 4.80% yield. Assuming that the pure expectations theory is correct,

The yield on a one-year Treasury security is 4.00%

the two-year Treasury security has a 4.80% 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?

Expections Theory= No MRP

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