The pure expectations theory, or the expectations hypothesis, asserts that Iong-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 a one-year bond purchased today will have the same return as a one-year bond purchased five years from now. False O True The yield on a one-year Treasury security is 5.1500%, and the two-year Treasury security has a 6.9500% 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? O 10.0092% 7.4630% O 8.7800% 11.1506% The yield on a one-year Treasury security is 5.150096, and the two-year Treasury Assuming that the pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate security has a 6.9500% yield. one year from now? O 10.0092% O 7.4630% O 8.7800% 11.1506% Recall that on a one-year Treasury security the yield is 5.1500% and 6.9500% 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 0.2000%, what is the market's estimate of the one-year Treasury rate one year from now? 8.3800% 9.5530% 10.6430% O 0 7.1230% Recall that on a one-year Treasury security the yield is 5.1500% and 6.9500% 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 0.2000%, what is the market's estimate of the one-year Treasury rate one year from now? 8.3800% O 9.553096 10.643096 7.1230% 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% 6.61% 5.46% 6.45% 0 0