One-year treasury securities yield 305 the market, Ask an Expert

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One-year Treasury securities yield 3.05%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 5.25%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places. (its not 8.46% as you guys previously got wrong)

This is based off expectations theory

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92301690

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