Given the Treasury rates shown below, what is the expected 2 year Treasury rate one year from today? Term Yield 1 year 1% 2 year 6% 3 year 9% answer format: show your answer to one decimal places. If your answer is, for example, 3.252%, then input 3.3 without the percent sign.

Given the Treasury rates shown below, what is the expected 2 year Treasury rate one year from today? Term Yield 1 year 1% 2 year 6% 3 year 9% answer format: show your answer to one decimal places. If your answer is, for example, 3.252%, then input 3.3 without the percent sign.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 18P

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

Given the Treasury rates shown below, what is the expected 2 year Treasury rate one year from today?

Term	Yield
1 year	1%
2 year	6%
3 year	9%

answer format: show your answer to one decimal places. If your answer is, for example, 3.252%, then input 3.3 without the percent sign.

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