The interest rate on one-year Treasury securities is 5 percent. The
interest rate on two-year Treasury securities is 6 percent. The pure
expectations theory is assumed to be correct. Which of the following
statements is most correct?	The maturity risk premium is positive.	The
market expects that one-year rates will be 5.5 percent one year from
now.	The market expects that one-year rates will be 7 percent one year
from now.	The yield curve is downward sloping.	None of the answers
above is correct.

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