What is the yield today for 2-year treasury securities


Question: Assume that a one-year Treasury securities yield 5%.The market anticipates that 1 year from now, one-year Treasury securities will yield 6%. So if the pure expectations theory is correct, what is the yield today for 2-year Treasury securities?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the yield today for 2-year treasury securities
Reference No:- TGS02080711

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)