A one-year Treasury security currently returns a 4.50% yield to maturity.A two-year Treasury security offers a 4.80% yield to maturity.If the expectations hypothesis is true,what is the expected return on a one-year security next year?
A) 4.80%
B) 4.90%
C) 5.00%
D) 5.10%
Correct Answer:
Verified
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