Question: The yield on a one - year Treasury security is 4 . 2 3 0 0 % , and the two - year Treasury security

The yield on a one-year Treasury security is 4.2300%, and the two-year Treasury security has a 5.7105% yield. Assuming that the pure expectations theory is correct, what is the markets estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
6.1302%
7.212%
8.2217%
9.1592%

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