Step $3$: Practice: Pure Expectations Theory

Now it's time for you to practice what you've learned.

Suppose the market offers the following Treasury securities:

Make the necessary calculations and complete the following table using the data on the securities yields and the pure expectation theory.

Investment

Yield

$1-$year Treasury security, $1$ year from now

$2-$year Treasury security, $2$ years from now

$3-$year Treasury security, $1$ year from now

$4-$year Treasury security, $2$ years from now