Calculate the expected yield on a three year note

Reference no: EM13275325

You have a one year note that yields 0.14%, a two year note that yields 0.23%. You also have a three year note that yields 0.28%, a five year note that yields 0.45%, a seven year note that yields 96%, and the ten-year note that yields 1.21%. Using the Pure Expectations Theory with no maturity risk, calculate the expected yield on a three year note for two years from now. Please show all work and explain.

Reference no: EM13275325

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