The market anticipates that 1 year fromnow 1-year treasury

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EXPECTATIONS THEORY: One-year Treasurysecurities yield 5%. The market anticipates that 1 year fromnow, 1-year Treasury securities will yield 6%. If the pureexpectations theory is correct, what is the yield today for 2-yearTreasury securities?

Reference no: EM13571280

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