Question: The current yield on a 1 year treasury bond is 1.02% and the current yield on a 3 year treasury bond is 1.61%. What is

The current yield on a 1 year treasury bond is 1.02% and the current yield on a 3 year treasury bond is 1.61%. What is the expected yield on a 2 treasury bond, 1 year from today (forward rate)? Use $1,000 as your investment (PV).

Answer Choices:

a. 1.91%

b. .55%

c. 1.1%

d. .95%

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