Question: Use the following information for Problems 36 through 39; assume today is Nov 15, 2019. Maturity Nov20 Nov21 Nov22 Nov23 Nov24 Nov25 STRIPS Price $953.13

Use the following information for Problems 36 through 39; assume today is Nov 15, 2019.

Maturity

Nov20

Nov21

Nov22

Nov23

Nov24

Nov25

STRIPS Price

$953.13

$901.56

$849.06

$790.94

$742.19

$695.00

According to the pure expectations theory of the term structure, what does the market believe the 3-year maturity spot yield will be on Nov 15, 2022?

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