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Use the U.S. Treasury yield information tabulated below to answer question 15 and 16. Maturity 1 year 2 years 3 years 4 years 5 years
Use the U.S. Treasury yield information tabulated below to answer question 15 and 16. Maturity 1 year 2 years 3 years 4 years 5 years 10 years 20 years 30 years Yield 5.37% 5.47% 5.65% 5.71% 5.64% 5.75% 16.33% 5.94% 15. If the pure expectations theory holds, what is the expected 5-year rate, 5 years from now? A. 5.86% B. 5.76% C. 5.75% D. 5.84% 16. If the pure expectations theory holds, what is the expected 10-year rate, 20 years from now? A. 5.55% B. 5.16% C. 5.34% D. 5.67%
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