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01-05-2024
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The yield on a one-year Treasury security is 4.6900%, and the two-year Treasury security has a 5.6280% 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?
a. 6.5744%
b. 7.4948%
c. 8.3495%
d. 5.5882%

Answer :

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