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 4.0000%, 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? -. 6.8200% - 8.6614% 5.7970% O 7.774896 Recall that on a one-year Treasury security the yield is 4.0000% and 5.4000% 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 0.5%, what is the market's estimate of the one-year Treasury rate one year from now? 6.6234% O 5.8100% 4.9385% 7.3787% Suppose the yield on a two-year Treasury security is 4.4%, and the yield on a five-year Treasury security is 5.6%. Assuming that the pure expectations theory is correct, what is the market's estimate of the three-year Treasury rate two years from now? 5.96% o 5.58% o 7.18% 6.41%