Suppose that at the end of 2019 the following term structure of interest rates for securities was observed: - One year bond (maturity end of XXXXXXXXXX% - Two year bond (maturity end of XXXXXXXXXX% pa...

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?