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The yield on a one-year Treasury security is 5.1500%, and the two-year Treasury security has a 6.1800% yield. Assuring that the pure expectations theory is

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The yield on a one-year Treasury security is 5.1500%, and the two-year Treasury security has a 6.1800% yield. Assuring that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate one year from now? 9.1694% 6.1370% 7.2200% 8 2308% Recall that on a one-year Treasury security the yield is 5.1500% and 6.1800% 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 3500%. What is the market's estimate of the one-year Treasury rate one year from now? 7.4210% 8.2680% 6.5100% 5.5340% 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 45% 6 61% 7.10% 6 69%

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