You observe the following us treasury yields 42 on a 1 year, Ask an Expert

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You observe the following U.S. Treasury yields: 4.2% on a 1 year to maturity bond, 4.4% on a 2-year bond, 4.9% on a 3-year bond and 5.3% on a 4-year bond. Using simple averaging (arithmetic not geometric), what is the implied 1-year rate that will occur in 1 year? What is the implied 1-year rate that will occur in 2 years? What is the implied 1-year rate that will occur in 3 years? Assume that expectations is the only factor determining the YTMs.

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