Yield Security (Percent) 1-year 5.50 2-year 6.60 3-year 8.00 4-year 9.30 If you want to...

80.2K

Verified Solution

Question

Finance

image

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students