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The current yield on a 1 year treasury bond is 1.02% and the current yield on a 3 year treasury bond is 1.61%. What is
The current yield on a 1 year treasury bond is 1.02% and the current yield on a 3 year treasury bond is 1.61%. What is the expected yield on a 2 treasury bond, 1 year from today (forward rate)? Use $1,000 as your investment (PV).
Answer Choices:
a. 1.91%
b. .55%
c. 1.1%
d. .95%
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