Question: The yield on a 2 - year security is 7 . 8 % . If the yield of a security maturing in 1 year is

The yield on a 2-year security is 7.8%. If the yield of a security maturing in 1 year is 7.2%, what is the expected yield on a 1-year security maturing at the end of year 2?
Multiple Choice
7.2%
8.4%
8.8%
9.6%

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