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The yield on a one-year Treasury security is 4.4600%, and the two-year Treasury security has a 6.0200% yield. Assuming that the pure expectations theory is
The yield on a one-year Treasury security is 4.4600%, and the two-year Treasury security has a 6.0200% 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? 0 7.5000% 08.6640% 9.6520% 0 6.4600% Recall that on a one-year Treasury security the yield is 4.4600% and 6.0200% 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 0.1500%. What is the market's estimate of the one-year Treasury rate one year from now? 7.2900% 8.3110% 0 9.2580% 06.1970% 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? O 6.61% 0 6.53% 07.10% 6.45%
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