Question: suppose that at the end of 2019 the following term...
Question details
Suppose that at the end of 2019 the following term structure of interest rates for securities was observed:

 One year bond (maturity end of 2020) 14%

 Two year bond (maturity end of 2021) 11.5% pa

 Three year bond (maturity end of 2022) 10% pa
Required:
What is your prediction for the 1 year interest rate bond starting in 2021?