One-year treasury securities yield 485 the market, Ask an Expert

Finance

One-year Treasury securities yield 4.85%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 2.5%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a gemetric average.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92259723

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