ne pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interes ates. Based on the pure expectations theory, is the following statement true or false? A certificate of deposit (CD) for two years will have the same yleld as a CD for one year followed by an investment in another one-year CD after one year. True Faise The yield on a one-year Treasury secueity is 5.1500%, and the two-year Treasury security has a 7.7250% yleld. Assuming that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate ont year from nowi (Note: Do not round your intermediate calculations.) 10.363144 11.013944 a. 8006% 8.8086% 13.1611% ecall that on a one-year Treasury security the yield is 5.1500% and 7.7250% on a two-year Treasury security. Suppose the one-year security does ot have a maturity risk premium, but the two-year security does and it is 0.2%. What is the market's estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.) 9.9537% 8.4606% 12.6412% 11.3472% Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20\%. Assuming that the pure expectations theory is correct, what is the market's estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.) 6.69% 6.53% 5.46% 6.454