Question: The yields on 1 - year and 2 - year STRIPS are 4 . 7 5 % and 5 . 2 5 % respectively. According

The yields on 1-year and 2-year STRIPS are 4.75% and 5.25% respectively. According to the "Expectations Theory" what will the yield on a 1-year STRIPS be one year from now?
a.4.00%
b.4.25%
c.5.00%
d.5.12%
e.5.75%
The yields on 1 - year and 2 - year STRIPS are 4

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