Hwa Leannon
28 Nov 2020

One-year Treasury securities yield 5%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 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.

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Vaishali Yadav
Vaishali Yadav
21 Jan 2021

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