Question: One-year Treasury bills yield 6%, while Treasury notes with 2-year maturities yield 6.7%. If the expectations theory holds (that is, the maturity risk premium is

One-year Treasury bills yield 6%, while Treasury notes with 2-year maturities yield 6.7%. If the expectations theory holds (that is, the maturity risk premium is zero), what is the market's forecast of what 1-year Treasury bills will be yielding one year from now? 6.7% 7.4% 7.8% 8% 8.2%

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