The expected yield on a 2 year security is 7.8%. If the yield on a t-bill maturing in 1 year is 7.2%, what is the yield on a 1 year t-bill maturing 1 year from now? [Remember the return should be the same for investing in 2 one year t-bills or 1 2 year t-bill.]
Select one: a. 7.2% b. 9.8% c. 15% d. 7.8%