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The yield on a one-year Treasury security is 5.380096, and the two-year Treasury security has a 7.2600% yield. Assuming that the pure expectations theory is

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The yield on a one-year Treasury security is 5.380096, and the two-year Treasury security has a 7.2600% 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 7.8030% O 11.6586% O 9.1800% 10465296 Recall that on a one-year Treasury security the yield is 5.3800% and 7.2600% 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? O 7.0210% 8.2600% O 9.4160% O 10.4900% 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 6.45% O 6.61% o 6.53% Q 5.46%

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