Question: please help 3. Pure expectations theory The pure expectations theory, or the expectations hypothesis, asserts that long-term Interest rates can be used to estimate future

please help
please help 3. Pure expectations theory The pure expectations theory, or the

3. Pure expectations theory The pure expectations theory, or the expectations hypothesis, asserts that long-term Interest rates can be used to estimate future short-term interest rates Based on the pure expectations theory, is the following statement true or false? The pure expectations theory assumes that investors do not consider long-term bonds to be riskier than short-term bonds True False The yed on a one-year Treasury security is 5.6100%, and the two year Treasury security has a 7.5735% yield. Assuming that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations 9.5735 17

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