Question: Suppose the interest rate on a 3-year treasury note is 1.75%, and 5-year notes are yielding 5.00%. Based on the expectations theory, what does the

Suppose the interest rate on a 3-year treasury note is 1.75%, and 5-year notes are yielding 5.00%. Based on the expectations theory, what does the market believe that 2-year treasuries will be yielding 3 years from now?

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