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Suppose you are given the yields on the following Treasury securities . For simplicity, assume that there is no maturity risk premium. Security Yield (

Suppose you are given the yields on the following Treasury securities. For simplicity, assume that there is no maturity risk premium.
Security
Yield
(Percent)
1year 4.50
2year 6.00
3year 7.10
4year 8.50
If you want to forecast the yield on a 1year security in one year from now, you need to build the following equation:
=. And the yield on 1year security in one year would be .
If you want to forecast the yield on a 1year security two years from now, you need to build the following equation:
=. And the yield on 1year security in two years would be .
If you want to forecast the yield on a 2year security one year from now, you need to build the following equation:
=. And the yield on 2year security in one year would be .
If you want to forecast the yield on a 3year security one year from now, you need to build the following equation:
=. And the yield on 3year security in one year would be .

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