Question: If Pure Expectations Theory is correct, what is the yield on a 2-year security, 2 years from now? Maturity Rate 1 year 3.6% 2 years

If Pure Expectations Theory is correct, what is the yield on a 2-year security, 2 years from now?

Maturity Rate
1 year 3.6%
2 years 3.8%
3 years 4.6%
4 years 5.2%
5 years 5.6%
6 years 6.0%



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