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? A certificate of deposit (CD) for two years will have the same yield as a CD for one year followed by an investment in another one-year CD after one year. True False The yield on a one-year Treasury security is 4.230096, and the two-year Treasury security has a 6.3500% 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 7.2335% ? 9.70 14% 10.8077% O 8.510090 Recall that on a one-year Treasury security the yield is 4.2300% and 6.3500% 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 0.3500%. what is the market's estimate of the one-year Treasury rate one year from now? 9.906096 6.6300% O 7.800090 O 8.892090 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? 6.69% 6.45% 7.10% 6.53%