The yield on a one-year Treasury security is 5.6100%, and the two-year Treasury security has a 8.4150% yield. Assuming that the pure expectations theory is correct, what is the markets estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

14.344%

12.8757%

11.2945%

9.6003%

Recall that on a one-year Treasury security the yield is 5.6100% and 8.4150% 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 0.45%. What is the markets estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

11.8247%

10.3725%

13.1731%

8.8166%

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 markets estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.)

6.69%

6.61%

6.45%

6.53%