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You are given the opportunity to invest either in a 3-year security or a combination of 1-year securities (time horizon 3 years). The forward rate

You are given the opportunity to invest either in a 3-year security or a combination of 1-year securities (time horizon 3 years). The forward rate on a 1-year security one year from now is 7.5 percent and two years from now 8 percent. The yield on a 1-year security today is8.2 percent. What is the yield on a 3-year security today such that makes you indifferent between investing in a 3-year security versus a combination of 1-year securities?

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