You observe the following yield curve for Treasury securities: Maturity 1 Year 2 Years 3 Years 4 Years 5 Years Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 4-year securities, 1 year from today? 6.2% 5.9% 6.8% 6.5% Yield 1.40% 2.40% 3.20% 3.40% 5.00% O 7.1%

You observe the following yield curve for Treasury securities: Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 4-year securities, 1 year from today? 6.2% 5.90 6.8% 8,5% 7.1%