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The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.8800% yield. Assuming that the pure expectations theory is

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The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.8800% 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? 11.3544% 9.9600% O 8.4660% 12.6492% Recall that on a one-year Treasury security the yield is 5.8400% and 7.8800% 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 0.3000%. What is the market's estimate of the one-year Treasury rate one year from now? 11.8620% 9.3400% O 7.9390% 10.6480% 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? 6.53% 6.69% 7.10% 6.45%

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