One-year Treasury securities yield 3.15%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 3.6%, heory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average. Do not round lound your answer to two decimal places. % 6.86 Hide Feedback Incorrect

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
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One-year Treasury securities yield 3.15%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 3.6%. 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 intermediate calculations.
Round your answer to two decimal places.
6.86
%
Hide Feedback
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Transcribed Image Text:One-year Treasury securities yield 3.15%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 3.6%. 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 intermediate calculations. Round your answer to two decimal places. 6.86 % Hide Feedback Incorrect
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