ECO - Suppose that "0" coupon US treasuries due to mature

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Suppose that "0" coupon US treasuries due to mature in 1 year were yielding 3% while 0 coupon US treasuries maturing in 2 years were yielding 3.8%. if you were a risk neutral investor who wanted to choose between these bonds the one that offered you the highest expected rate of returh after 1 year what would you have to expect about 1 year treasury yields 1 year from now in order to pick todays 1 year bond explain your answer and show your calculations.

    • 12 years ago
    ECO - Suppose that "0" coupon US treasuries due to mature
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