Question: Suppose 1 - year Treasury bonds yield 4 . 0 0 % while 2 - year T - bonds yield 5 . 1 0 %

Suppose 1-year Treasury bonds yield 4.00% while 2-year T-bonds yield 5.10%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 1-year T-bond expected to be one year from now?Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places.
a.6.21%
b.6.40%
c.5.03%
d.7.52%
e.7.27%

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