Using the yield curve data in the image, calculate the expected future 1-year short rate for one year from now.

1. Draw the yield curve of US Treasuries. US Treasuries Yield 3 Month 2.32% 2.46% 3 .37 3.17 3.01 2.88 265 6 Month 12 Month 2 Year 5 Year 2.65% 2.88% 3.01% 3.17% 10 Year 3.37% 30 Year 2.32 1o 3 3 G 1 month month month Year year year Year