Question: The yield on a one - year Treasury security is 5 . 8 4 0 0 % , and the two - year Treasury security

The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 8.7600% 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? (Note: Do not round your intermediate calculations.)
13.4071%
11.7606%
14.936%
9.9965%
Recall that on a one-year Treasury security the yield is 5.8400% and 8.7600% 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 0.2%. What is the market's estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
14.4144%
12.9389%
11.3499%
9.6474%
 The yield on a one-year Treasury security is 5.8400%, and the

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