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Suppose that the yield on a two-year Treasury security is 5.84%, and the yield on a five-year Treasury security is 6.34%. Assuming that the pure expectation theory is correct, what is the markets estimate of the three- year on this question. Treasury rate two years from now? The error margin will allow either arithmetic or geometric averaging Your answer should be between 5.58 and 7.98, with no special characters. You may round to 4 decimal places if you wish, but only 2 decimal places are necessary for a correct answer.
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