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You observe the following yields on Treasury bonds with different maturities 1 year T-bond: 3.7% 2 year T-bond: 4.0% 3 year T-bond: 4.1% . You

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You observe the following yields on Treasury bonds with different maturities 1 year T-bond: 3.7% 2 year T-bond: 4.0% 3 year T-bond: 4.1% . You wish to invest in a 2-year bond today, and a 1-year bond after the 2-year bond matures. What must be the expected yield on the future 1 year bond? 4.15% 4.20% 4.30% 4.25%

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