Calculate the expected yield on a one-year t-bond purchased

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Problem 1: Calculate the expected yield on a 1-year t-bond purchased one year from now. given that cureently 1-year treaury bonds yield 4% while 2-year bonds yield 6%. assume that the pure expections theory is correct and thus the maturity risk preium for t-bonds is zero

Reference no: EM133002502

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