Problem:

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%.

Requirement:

Question: Using the Pure Expectations Theory with no maturity risk, calculate the expected yield on a three year note for two years from now.

Note: Show supporting computations in good form.