Assume that the term structure of U.S. Treasury securities includes the following rates: Security Annual Yield (%)

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Assume that the term structure of U.S. Treasury securities includes the following rates:

Security

Annual Yield (%)

3-month bill

4.50

6-month bill

4.57

1-year bill

4.52

2-year note

4.51

3-year note

4.48


Using this information, calculate:

(a) The six-month annualized yield expected in the second half of the current year,

(b) The one-year expected for year 3.

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Financial Institutions, Markets And Money

ISBN: 1704

12th Edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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