Question: Question 5 (1 point) one-year T-bills yield 2.00%. Based on futures rates, the market expects that one year from now, new one year t-bill will
Question 5 (1 point) one-year T-bills yield 2.00%. Based on futures rates, the market expects that one year from now, new one year t-bill will yield 3.50%. Based on the Pure Expectations Theory, what is the yield of a 2-year Treasury Note? Answer as a percent with at least 2 decimal places. For example, 10 percent should be entered as 10.00. Do not use the % sign.)
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