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 semi-annual yield on a 2 year treasury bond, 1 year from today (forward rate)? Use $1,000 as your investment (PV). Hint As the exam instructions state, the rates given in this problem are annual. However, the solution (f variable) to the fonvard rate formula (see your notes) is a semi-annual rate. Use this semi-annual rate when choosing your answer. Do not convert the rate to annual. This was the same as in the homework. 1107 95% 91% 55%