One-year Treasury securities yield 6%. The market anticipates that 1-year from now 1-year Treasury securities will yield
Posted: Wed Jul 06, 2022 6:28 pm
One-year Treasury securities yield 6%. The market anticipates that 1-year from now 1-year Treasury securities will yield 4.2%. If the pure expectations theory is correct, what should be the yield today for 2-year Treasury securities? Write your answer as a percentage, i.e. for example write 8 as 8%.