Question: Recall that on a one - year Treasury security the yield is 4 . 2 3 0 0 % and 5 . 0 7 6

Recall that on a one-year Treasury security the yield is 4.2300% and 5.0760% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.35%. What is the market's estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
6.635%
4.4407%
5.9558%
5.2244%
 Recall that on a one-year Treasury security the yield is 4.2300%

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