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What does the market expect will be the interest rate

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Reference no: EM132141215

This is what it gives me for Treasury securities: 

Maturity Yield

1 year 6.0%

2 years 6.2%

3 years 6.4%

4 years 6.5%

5 years 6.5%

Question:

Assume that the pure expectations theory of the term structure is correct. What does the market expect will be the interest rate on 2-year securities 3 years from now?

Reference no: EM132141215

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