Using the expectations hypothesis for the term structure of interest rates, calculate the expected yields for securities with maturities of two and three years on the basis of the following data: $\begin{array}{cccc}
\text { Yield on } 1 \text { year } \mathrm{T} \text { bill at beginning of year } 1&7.2\%\\text { Yield on } 1 \text { year } \mathrm{T} \text { bill at beginning of year } 2&7.8\%\\text { Yield on } 1 \text { year } \mathrm{T} \text { bill at beginning of year } 3&8.4\%
\end{array}$

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The Answer of Using the expectations hypothesis for the term structure of interest rates, calculate the expected yields for securities with maturities of two and three years on the basis of the following data: $\begin{array}{cccc}
\text { Yield on } 1 \text { year } \mathrm{T} \text { bill at beginning of year } 1&7.2\%\\text { Yield on } 1 \text { year } \mathrm{T} \text { bill at beginning of year } 2&7.8\%\\text { Yield on } 1 \text { year } \mathrm{T} \text { bill at beginning of year } 3&8.4\%
\end{array}$

Using the Expectations Hypothesis for the Term Structure of Interest