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 true or false? The pure expectations theory assumes that investors do not consider long-term bonds to be riskier than short-term bonds rue O False The yield on a one-year Treasury security is 4.6900%, and the two-year Treasury security has a 5.6300% 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? 7.5012% 6.5800% O 8.356690 O 5.593090 Recall that on a one-year Treasury security the yield is 4.6900% and 5.6300% on a two-year Treasury security Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.1500%. what is the market's estimate of the one-year Treasury rate one year from now? 7.9760% O 6.2800% 5.338090 O 7.1590% 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? O 7.10% 6.45% 6.53% 6.69%