Error margin will allow either arithmetic averaging

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Reference no: EM131592515

Suppose that the yield on a two year treasury security is 5.84%, and the yield on a five year treasury security is 6.06%. Assuming that the pure expectation theory is correct, what is the markets estimate of the three year treasury rate 2 years from now. The error margin will allow either arithmetic or geometric averaging on this question. Please round your answer 2 decimal places.

Reference no: EM131592515

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