One-year treasury securities yield 5 the market anticipates


One-year Treasury securities yield 5%. The market anticipates that 1 year from now, 1 year Treasury securities will yield 6%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average.

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Financial Management: One-year treasury securities yield 5 the market anticipates
Reference No:- TGS01175308

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