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Use the following excerpt from the Daily Treasury Yield Curve Rates from 10/19/2020. Date 1 year 2 year 3 year 5 year 10/19/2020 0.13% 0.16%

Use the following excerpt from the Daily Treasury Yield Curve Rates from 10/19/2020. Date 1 year 2 year 3 year 5 year 10/19/2020 0.13% 0.16% 0.19% 0.34% If expectations theory is true, what interest rate would you expect a 3-year Treasury to pay 2 years from now (i.e. over years 3-5)?

Answer choices:

0.19%

0.23%

0.46%

0.44%

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