Question: need help! What does K3. t = 2.5% mean for a Treasury issued asset? The expected future one-year rate on a Treasury will be 2.5%

need help! need help! What does K3. t = 2.5% mean for a Treasury

What does K3. t = 2.5% mean for a Treasury issued asset? The expected future one-year rate on a Treasury will be 2.5% three years from now O Today's 3 year T-Note pays 2.5% for three years, if held to maturity The Treasury does not guarantee a rate of return on its 3-year notes when the asset is held to maturity The one-year forward rates are expected to be 2.5% for the next three years

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