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You can observe the following Treasury yields: Maturity ; Yield 1 year ; 3.33% 2 years ; 3.28 3 years ; 3.20 4 years ;
You can observe the following Treasury yields:
Maturity ; Yield
1 year ; 3.33%
2 years ; 3.28
3 years ; 3.20
4 years ; 2.97
5 years ; 2.73
6 years ; 2.60
If the pure expectations theory holds, what does the market expect will be the interest rate on three-year securities, three years from now?
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