Suppose you are given the yields on the following Treasury securities. 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 need to build the following equation: If you want to forecast the yield on a 1-year security two years from now, you need to build the following equation: If you want to forecast the yield on a 2-year security one year from now, you need to build the following equation: =. And the yield on 2-year security in one year would be If you want to forecast the yield on a 3-year security one year from now, you need to build the following equation: =. And the yield on 3-year security in one year would be Now it's time for you to practice what you've learned. Suppose the market offers the following Treasury securities: Investment Yield 1-year Treasury security, 1 year from now 7.31% 2-year Treasury security, 2 years from now 11.77% 3-year Treasury security, 1 year from now 10.27% 4-year Treasury security, 2 years from now 14.46%