Question: ... Suppose the yield on a two year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%. Assuming that the

... Suppose the yield on a two year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%. Assuming that the pure expectations theory is correct, what is the market's estimate of the three-year Treasury rate two years from now? a. 6.61% b. 5.41% c. 6.45% d. 7.10%

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