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The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.0080% yield. Assuming that the pure expectations calculations.) 9.3353%10.3999%8.1889%6.9606%

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The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.0080% yield. Assuming that the pure expectations calculations.) 9.3353%10.3999%8.1889%6.9606% Recall that on a one-year Treasury security the yield is 5.8400% and 7.0080% 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 market's estimate of the one-year Treasury rate year from now? (Note: Do not round your intermediate calculations.) 8.3002%7.2809%6.1888%9.2467% 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? (Note: Do not round intermediate calculations.) 6.53%6.69%6.61%6.45%

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