The yield on a one-year Treasury security is 4.4600%, and the two-year Treasury security has...
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The yield on a one-year Treasury security is 4.4600%, and the two-year Treasury security has a 6.6900% yield. Assuming that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate one year from now? O 10.2258% O 11.3919% 7.62455 O 8.9700% Recall that on a one-year Treasury security the yield is 4.4600% and 6.6900% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.15%. What is the market's estimate of the one-year Treasury rate one year from now? 8.6600% O 10.9982" 7.3610% 9.8724 Suppose the yield on a two-year Treasury security is 4.6%, and the yield on a five-year Treasury security is 5.9%. Assuming that the pure expectations theory is correct, what is the market's estimate of the three-year Treasury rate two years from now? O 6.78 6.315 5.90% 7.59%
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