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The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.8840% yield. Assuming that the pure expectations theory is
The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.8840% yield. Assuming that the pure expectations theory is correct, what is the markets estimate of the one-year Treasury rate one year from now?
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