Question $13$

$1$ pts

Suppose that the annual yield to maturity for the $6-$month and $1-$year Treasury bill is $6\mathrm{.}5\%$ and $7\mathrm{.}0\%,$ respectively. These yields represent the $6-$month and $1-$year spot rates. Also assume the following Treasury yield curve $($i$.$e$.,$ the price for each issue is $$100)$ has been estimated for $6-$month periods out to a maturity of $3$ years:

$\backslash$table$[[$Years to Maturity,Annual Yield to Maturity $($BEY$)],[1\mathrm{.}5,5\mathrm{.}4\%$