Question: The expected return on a 2-year security is 7.8%. If the yield on a 1-year T-bill is 7.2%, what is the yield on a 1-year

The expected return on a 2-year security is 7.8%. If the yield on a 1-year T-bill is 7.2%, what is the yield on a 1-year T-bill maturing in 1 year? [Remember that the yield must be the same to invest in 2 one-year Treasuries or 1 2-year Treasury.]

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