Today is January 1, 2014, and investors expect the annual risk-free interest rates in 2014 through 2016 to be:

What is the yield to maturity for Treasury bonds that mature at the end of

(a) 2015 (a two-year bond) and

(b) 2016 (a three-year bond)? Assume the bonds have no risks.

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Year One-Year Rate (RF) 2014 2015 2.2% 1.8 2016 2.9