(Answered) Suppose the annualized yield on a one-year security today

Finance

Suppose the annualized yield on a one-year security today is 0.01. The markets expect the annualized yield on a one-year security to be 0.02 one year from today, 0.03 two years from today, and 0.04 three years from today. Using the pure expectations theory, calculate the annualized yield on a four-year security today.

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