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Interest rates on 4-year treasury securities are currently 7% while 6-year Treasury securities yield 7.

Interest rates on 4-year treasury securities are currently 7% while 6-year Treasury securities yield 7.5%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now?

This question was asked on Mar 26, 2010.

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