Question: Suppose 2 Year Treasury bonds yield 6.00% while 5 year Treasury bonds yield 6.50%. Assuming the pure expectations theory is correct, what is the yield

Suppose 2 Year Treasury bonds yield 6.00% while 5 year Treasury bonds yield 6.50%. Assuming the pure expectations theory is correct, what is the yield on a 3 year T-bond expected to be two years from now?

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