Treasury security note with a two-year maturity

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Reference no: EM13883417

The expected yield on a one-year T-bill at the beginning of year 1 is 7.20%. The expected yield on a one-year T-bill at the beginning of year 2 is 7.80%. Using the pure expectations theory of the term structure of interest rates, what is the expected yield for a U.S. Treasury security note with a two-year maturity?

Reference no: EM13883417

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