Your initial post should be ~250-300 words.

An investor with an investment horizon of two years has two investment opportunities:

1. The first investment opportunity is to invest in a two-year Treasury bond, yielding 5% per year.

2.The second opportunity is to invest in a one-year Treasury bond and then after one year, to roll over investment into another one-year bond. If one year Treasury bond yields 4% and assuming that Expectation Theory holds what should one year bond yield one year from now? Explain fully and show your work.