the yield on a one year treasury security is 5 6100 and the two year t
Question
The yield on a one-year Treasury security is 5.6100%, and the two-year Treasury security has a 6.7320% 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.)
O 8.9671%
O 9.9897%
O 6.686%
O 7.8659%