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You observe the following yields on various Treasury securities: Maturity Yield 1 year 6.0% 3 years 6.4 6 years 6.5 9 years 6.8 12 years
You observe the following yields on various Treasury securities: Maturity Yield 1 year 6.0% 3 years 6.4 6 years 6.5 9 years 6.8 12 years 7.0 15 years 7.2 Using the expectations theory, forecast the interest rate on 6-year Treasuries, nine years from now.
a. 6.70%
b. 6.95%
c. 7.20%
d. 7.80%
e. 8.00%
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