A One-Year Treasury Security Currently Returns a 4

question 3

Multiple Choice

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%

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Definitions:

Political Logrolling

A method where lawmakers reciprocate support by backing each other's suggested measures or legislative agendas.

Paired-Choice Voting

A voting system where voters choose between pairs of candidates or options in a series of rounds, each round narrowing down the choices until a winner is decided.

Majority Voting

A voting system where the decision or choice that receives more than half of the votes wins.

Public Good

Items or services provided at no cost to everyone in a society, offered by the government or by private organizations or people, without any profit-seeking intentions.