Expectations theory one year treasury securities yield 485, Financial Management

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Expectations theory one year treasury securities yield 485

Expectations theory one year treasury securities yield 4.85%. The market anticipates that 1 year now, 1 year treasury securities will yield 5.2%. If the 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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Financial Management: Expectations theory one year treasury securities yield 485

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