A one-year treasury security has a yield of 40000 and a


A one-year Treasury security has a yield of 4.0000% and a two-year Treasury security has a yield of 4.8000%. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.4000%. What is the market's estimate of the one-year Treasury rate one year from now?

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Financial Management: A one-year treasury security has a yield of 40000 and a
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