Question: 3. Recail that on a one year Treasury security the yield is 440000% and 5.4000 on a two year treasury security. Suppose the one year

3. Recail that on a one year Treasury security the yield

3. Recail that on a one year Treasury security the yield is 440000% and 5.4000 on a two year treasury security. Suppose the one year security does not have a maturity risk premium but the two year security does and it is 043000964 What is the markets estimate of the one year treasury rate one year from now? 3} 740790915 b] 6.2100% c) 7.83?0% d] 5.2?909'3

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