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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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