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1. Observing the following term structure; a US treasury bond maturing in 5 years has a yield of 6% while US Treasury bond maturing in

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1. Observing the following term structure; a US treasury bond maturing in 5 years has a yield of 6% while US Treasury bond maturing in 3 years has a yield of 8%; what is the expected 2 year rate, 3 years from now? 3.07% 8.07% 2.36% 4.35% 1. Observing the following term structure; a US treasury bond maturing in 5 years has a yield of 6% while US Treasury bond maturing in 3 years has a yield of 8%; what is the expected 2 year rate, 3 years from now? 3.07% 8.07% 2.36% 4.35%

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