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ch 6 video less /7 Suppose you are given the vields on the following Treasury securitios. For simplicity, assume that there is no maturity risk

ch 6 video less /7
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Suppose you are given the vields on the following Treasury securitios. For simplicity, assume that there is no maturity risk premium. If you want to forecast the yield on a 1-year security in one year from now, you seed to buld the following equation: -And the yield on 1 -year security in one year would be If you want to forecast the vield on a I-year security two years from now, you need to bulld the following equation: And the veld on 1 -year security in two years would be If you want to forecast the yleld on a 2 - vear security one year from now, you need to build the following oquation: And the yletd on 2 -year security in one yeat would be If you want to forecast the vild on a 3-mar security one vear from now, you need to boild the following pequation: And the velt on 3 vear socurity fin che vear nould be

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