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You observe the following yield curve for Treasury securities: Maturity Yield 1 Year 2.0096 2 Years 3.30% 3 Years 4.10% 4 Years 4.60% 5 Years
You observe the following yield curve for Treasury securities: Maturity Yield 1 Year 2.0096 2 Years 3.30% 3 Years 4.10% 4 Years 4.60% 5 Years 6.60% Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 3-year securities. 2 year from today? O 6.8% O 8.3% O 7.8% 8.8% 7.3%
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