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1 0 . Suppose 1 - year Treasury bonds yield 4 . 0 0 % while 2 - year T - bonds yield 5 .

$10 .$ Suppose $1 -$ year Treasury bonds yield $4.00 %$ while $2 -$ year T $-$ bonds yield $5.10 % .$ Assuming the pure expectations theory is correct, and thus the maturity risk premium for T $-$ bonds is zero, what is the yield on a $1$ year T $-$ bond expected to be one vear from now?

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Question

1 0 . Suppose 1 - year Treasury bonds yield 4 . 0 0 % while 2 - year T - bonds yield 5 .

10. Suppose 1-year Treasury bonds yield 4.00% while 2-year T-bonds yield 5.10%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 1 year T-bond expected to be one vear from now?

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$10 .$ Suppose $1 -$ year Treasury bonds yield $4.00 %$ while $2 -$ year T $-$ bonds yield $5.10 % .$ Assuming the pure expectations theory is correct, and thus the maturity risk premium for T $-$ bonds is zero, what is the yield on a $1$ year T $-$ bond expected to be one vear from now?