Yield Security (Percent) 1-year 5.50 2-year 6.60 3-year 8.00 4-year 9.30 If you want to...
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Yield Security (Percent) 1-year 5.50 2-year 6.60 3-year 8.00 4-year 9.30 If you want to forecast the yield on a 1-year security in one year from now, you need to build the following equation: (1 +0.0660) (1 + 0.0550) x (1 + x) . And the yield on 1-year security in one year would be 7.71% If you want to forecast the yield on a 1-year security two years from now, you need to build the following equation: (1 +0.0660) x (1 + y) (1 +0.08002 10.86% . And the yield on 1-year security in two years would be If you want to forecast the yield on a 2-year security one year from now, you need to build the following equation: (1 +0.0800) (1+0.0660 x (1+z) . And the yield on 2-year security in one year would be If you want to forecast the yield on a 3-year security one year from now, you need to build the following equation: (1 +0.0930 (1 + 0.0550) x (1 + r) . And the yield on 3-year security in one year would be
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