A one year treasury bill currently offers a 4% return rate. A two year treasury no offers a 4.5% return. under the Expections theory what rate of return do investors inspect a one year treasury bill to pay next

Term Structure A 1-year Treasury bil cunrerly offers a 4% rate of rewum. A 2 -year Treasury note offers a 4.5% rate of metum. Undor the expectations thecry, what rate of return do investors oxpect a tyear Treasury ball to pay next year? The rale of return imesters expect a t-yeac Treasury bal to pay next year is 5. (Round to two decimal places.)