Today is Jan 2019 and the current Treasury bond rates are as follow: Maturity Yield Dec 2019 4% Dec 2020 3% To calculate the expected yield r of the bond from Jan 2020 to Dec 2020 mentioned above, you will need the following: 1(1+0.04)^2 = 1(1+0.03)(1+r) 1(1+0.03)^2 = 1(1+0.04)(1+r) (0.04 + 0.03)/2 = r (0.04/0.03)+1 = r