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The yield on a one-year Treasury security is 4.0000%, and the two-year Treasury security has a 6.0000% yield. Assuming that the pure expectations theory is

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The yield on a one-year Treasury security is 4.0000%, and the two-year Treasury security has a 6.0000% 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? 6.8340% 10.2108% 8.0400% 9.1656% Recall that on a one-year Treasury security the yield is 4.0000% and 6.0000% 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? 6.0610% 9.0550% 8.1280% 7.1300% 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? 6.61% 6.45% 5.46% 6.53%

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