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The pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interest rates. Based on the pure expectations theory, is the following statement tme or false? The pure expectations theory assumes that investors do not consider long-term bonds to be riskier than short-term bonds. 0 True 0 False The yield on a one-yearTreasury security is 4.0000%, and the two-year Treasury security has a 5.4000% yield. Assuming that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate one year from now? 0 5.7970% 0 6.8200% 0 7.7748% 0 8.6614% Recall that on a one-year Treasury security the yield is 4.000{)% and 5.4000% on atwo-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.2000%. What is the market's estimate of the one-year Treasury rate one year from now? 0 5.4490% 0 7.3070% 0 8.1410% 0 6.4100% 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? 0 6.69% O 5.46% O 6.53% O 6.45%