Question
one-year Treasury note yields 0.12% (0.0012 in decimal form), the two-year note yields 0.40% (0.0040), the three-year note yields 0.78% (0.0078), the five-year note yields
one-year Treasury note yields 0.12% (0.0012 in decimal form),
the two-year note yields 0.40% (0.0040),
the three-year note yields 0.78% (0.0078),
the five-year note yields 1.60% (0.0160),
the seven-year note yields 2.22% (0.0222) and
the ten-year note yields 2.81% (0.0281).
a) What is the expected yield on a one-year note delivered one year from now?
b) What is the expected yield on a one-year note delivered two years from now?
c) What is the expected yield on a three-year note delivered two years from now?
d)What is the expected yield on a two-year note delivered five years from now?
e) What is the expected yield on a five-year note delivered five years from now?
f) What is the expected yield on a seven-year note delivered three years from now?
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