Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the vield on a one year treasury security is 4.460

The vield on a one year Treasury security is 4.46004, and the two-year Treasury security...

70.2K

Verified Solution

Question

Finance

image
The vield on a one year Treasury security is 4.46004, and the two-year Treasury security has a 6.6900% yield. Assuming that the pure expectations theory is correct, what is the markets estimate of the one year Treasury rate one year from now? O 10.225 1139194 7.6245 9700 Recalls that on a year the security the yield is 4.46001 and 6.9900% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.15%. What is the market's estimate of the one-year Treasury rate one Vear from now? O. 10.99 7.3610 Suppose the yield on to the security is 4.6%, and the yield on a five-year Treasury security is 5.9%. Assuming that the pure expectations theory is correct, what is the markets estimate of the three-year Treasury rate two years from now? 6.78% 6:31 5.00 7.595

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students