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The yield on a one-year Treasury security is 4.9200%, and the two-year Treasury security has a 5.9000% yield. Assuming that the pure expectations theory is
The yield on a one-year Treasury security is 4.9200%, and the two-year Treasury security has a 5.9000% 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? O 8.7503% O 7.8546% 0 6.890096 O 5.8565% Recall that on a one-year Treasury security the yield is 4.9200% and 5.9000% 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 0.2500%, what is the market's estimate of the one-year Treasury rate one year from now? 6.3900% O 8.1150% O 5.4320% O 7.285090 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% o 6.69% o 6.45% O 7.10%
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