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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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