What is the implied one year treasury rate

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As an investor you can buy a 2 year treasury note @ par yielding 3%. The 1 year treasury note is currently yielding 2.5%. What is the IMPLIED one year treasury rate one year from today?

If you think that one year treasury rates will be 3.65% one year from now should you buy the 2 year treasury today or buy a 1 year treasury and when it matures buy another one year treasury?

Reference no: EM132154641

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