The pure expectations theory, or the expectations hypothes's, 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 assurmes that a one-year bond purchased today will have the same return as a one-year bond purchased five years from now. O False O True The yield on a one-year Treasury security is 5.3800%, and the two-year Treasury security has a 64600% 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? 64179% 75500% 8.6070% O 9,5885% Recall that on a one-year Treasury security the yield is S3800% and 6.4600% 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 0.4500%. what is the market's estimate of the one year Treasury rate one year trom non 9 7.5700% 8.4330% Q 5.6440% 66400% Suppose the yield on a two-year Treasury security is 5.83%, and the yield on anveyear Treasury that the pure expectations theory is correct, what is the market's estimate of the three-year Treasury rate starty e2 2 3 4 6