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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

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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 correct, what is the market's estimate of the one-year Treasury rate one year from now? O 5.856596 e) 6.8900% o 8.7503% 7.854696 Recall that on a one-year Treasury security the yield is 4.9200% and S.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 itis 0.1s00%, what is the market's estimate of the one-year Treasury rate one year from now? o 6.5900% O 8.3690% 7.5130% o 5.6020% Suppose the yield on a two-year Treasury secunty is s.839, 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? 5.46% 6.53% o 6.45% 0 7.10%

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