(Solution) - Suppose today is January 3 2012 and investors expect the -(2025 Original AI-Free Solution)

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Suppose today is January 3, 2012, and investors expect the annual risk-free interest rates in 2016 and 2017 to be:
Year 1-Year Rate (rRF)
2016....................4.5%
2017......................2.3
Currently a four-year Treasury bond that matures on December 31, 2015 has an interest rate equal to 2.5 percent. What is the yield to maturity for Treasury bonds that mature at the end of (a) 2016 (a five-year bond) and (b) 2017 (a six-year bond)? Assume the bonds have no risks.