Question: 3 question it saying its wrong- please I need the steps to get to the right answer. Suppose 2 -year Treasury bonds yield 5.8%, while

3 question it saying its wrong-

please I need the steps to get to the right answer. 3 question it saying its wrong- please I need the steps

Suppose 2 -year Treasury bonds yield 5.8%, while 1 -year bonds yield 4.6%,r is 1.25%, and the maturity risk premium is zero. Negative expected inflation rates, if any, should be indicated by a minus sign. a. Using the expectations theory, what is the yleld an a 1-year bond, 1 year from now? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. % b. What is the expected inflation rate in Year 1? Do not round intermediate calculations. Round your answer to two decimal places. What is the expected inflation rate in Year 2? Do not round intermediate calculations. Round your answer to two decimal places

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