The one-year treasury note has a yield of 2 it is expected, Finance Basics

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The one-year treasury note has a yield of 2 it is expected

Question: The one-year Treasury Note has a yield of 2%. It is expected that the same one-year Treasury Note issued one year from now is expected to also yield 2%. Use the rational expectations theory on the term structure of interest rates to determine the yield on a current 2-year Treasury-Note.

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Finance Basics: The one-year treasury note has a yield of 2 it is expected

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Finance Basics: The one-year treasury note has a yield of 2 it is expected

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