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You observe the following yield curve for Treasury securities: Maturity Yield 1 Year 4 . 3 0 % 2 Years 5 . 8 0 %

You observe the following yield curve for Treasury securities:
Maturity Yield
1 Year 4.30%
2 Years 5.80%
3 Years 6.50%
4 Years 6.70%
5 Years 7.30%
Assume that the pure expectations hypothesis holds. What does the market expect will be
the yield on 4-year securities,1 year from today?
Group of answer choices
7.55%
7.05%
8.05%
6.55%
6.05%

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