Question: Suppose the yield on a 2 year treasury security is 5.83% and the yield on a 5 year treasury security is 6.20%. Assuming that the
Suppose the yield on a 2 year treasury security is 5.83% and the yield on a 5 year treasury security is 6.20%. Assuming that the pure expectations theory is correct, what is the markets estimate of the 3 year treasury rate 2 years from now?
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