a. What is the expected 1-year bond yield, 1 year from now? b. What is the expected
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a. What is the expected 1-year bond yield, 1 year from now?
b. What is the expected 1-year bond yield, 5 years from now?
c. What is the expected 3-year bond yield, 5 years from now?
| years to maturity | YTM | Liquidity Premium |
| 1 | 5.00% | 0.00% |
| 2 | 5.50% | 0.25% |
| 3 | 6.00% | 0.50% |
| 4 | 6.50% | 0.75% |
| 5 | 7.00% | 1.00% |
| 6 | 7.40% | 1.20% |
| 7 | 7.80% | 1.40% |
| 8 | 8.20% | 1.55% |
| 9 | 8.50% | 1.70% |
| 10 | 8.80% | 1.80% |
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Related Book For 
Management Science The Art of Modeling with Spreadsheets
ISBN: 978-1118582695
4th edition
Authors: Stephen G. Powell, Kenneth R. Baker
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