The yield on a one-year Treasury security is 5.6100 %, and the two- year Treasury security has a 7.5735% 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? (Note: Do not round your intermediate calculations. ) 8.1375 % 12.1583 % 9.5735 % 10.9138%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The yield on a one-year Treasury security is 5.6100 %, and the two-year Treasury security has a
7.5735% 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? (Note: Do not round your intermediate calculations.
) 8.1375 % 12.1583 % 9.5735 % 10.9138%
Transcribed Image Text:The yield on a one-year Treasury security is 5.6100 %, and the two-year Treasury security has a 7.5735% 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? (Note: Do not round your intermediate calculations. ) 8.1375 % 12.1583 % 9.5735 % 10.9138%
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