Question: Suppose 2 - year Treasury bonds yield 6 % while 1 - year bonds yield 4 % . Real risk - free rate is 1

Suppose 2-year Treasury bonds yield 6% while 1-year bonds yield 4%. Real risk-free rate is 1.75% and the maturity risk premium is zero. Using the expectations theory, what is the yield on a 1-year bond one year from now? FIN3300F24 intends to calculate the yield using a geometric average.
Suppose 2-year Treasury bonds yield 6% while 1-year bonds yield 4%. Real risk-free rate is 1.75% and the maturity risk premium is zero. Using the expectations theory, what is the yield on a 1-year bond one year from now? FIN3300F24 intends to calculate the yield using a geometric average.
3.75%
8.04%
10.24%
8.25%

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