Given the following yield information on U.S. Treasury securities:
- 1-year note yield = 4.23%
- 2-year note yield = 4.01%
- 3-year note yield = 4.29%
- 4-year note yield = 4.95%
- 5-year note yield = 4.33%
- 6-year note yield = 4.33%
Given constant premiums of 0, .16%, .21%, .24%, .26%, and .265%.
a. Calculate the expected expectations yields for a (3,3) path.
b. Calculate the expected market yields for a (2,4) path.
c. Determine the expected preferred habitat yield for a 3-year note purchased at the beginning of year 2.
d. Determine the expected expectations yield on a 5-year note purchased today.