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You are given the following information regarding the U.S. Treasury yields. Maturity Yield 1 year 3.53% 2 years 3.76% 3 years 3.89% 4 years 3.95%

You are given the following information regarding the U.S. Treasury yields.

Maturity

Yield

1 year

3.53%

2 years

3.76%

3 years

3.89%

4 years

3.95%

5 years

4.00%

10 years

4.25%

20 years

4.34%

30 years

4.50%

If the pure expectations theory holds, what is the expected 10-year rate, 20 years from now?

2.38%

4.58%

4.63%

4.82%

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