Question 20 2 pts Suppose the annualized yield on a one-year security today is 0.04. The markets expect the annualized y

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Question 20 2 Pts Suppose The Annualized Yield On A One Year Security Today Is 0 04 The Markets Expect The Annualized Y 1 (16.36 KiB) Viewed 28 times

Question 20 2 pts Suppose the annualized yield on a one-year security today is 0.04. The markets expect the annualized yield on a one-year security to be 0.02 one year from today, 0.05 two years from today, and 0.08 three years from today. Using the pure expectations theory, calculate the annualized yield on a three-year security today. (Enter the answer a as decimal, with 4 decimal places.e.g. 0.1234. DO NOT ENTER IT AS 12.34%) 2 pts