You know that 2-year treasury notes yield 36 per year and, Financial Management

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You know that 2-year treasury notes yield 36 per year and

You know that 2-year Treasury notes yield 3.6% per year and 1-year treasuries yield 4.3% per year.

Assuming that the maturity risk premium is zero in those two years, the yield on 1-year bonds 1 year from now is ______ %.

Use the expectation theory and give your answer in percentage terms to one decimal places.

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Financial Management: You know that 2-year treasury notes yield 36 per year and

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Financial Management: You know that 2-year treasury notes yield 36 per year and

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