One year treasury securities yield 6.9 while two year, Ask an Expert

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One year treasury securities yield 6.9%, while two year Treasury securities yield 7.2%. If the expectations theory is correct (that is, the maturity risk premium = 0) what does the market anticipate will be the yield on one year treasury securities on one year from now?

a. 6.0%
b. 6.7%
c. 7.2%
d. 7.5%
e. 8.0%

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