Question: Please answer the questions correctly and clearly. Question One 3.1,,&,u Suppose the annual yield on a two year treasury bond is 9%, the yield on

Please answer the questions correctly and clearly.

Question One 3.1,,&,u Suppose the annual yield on a two year treasury bond is 9%, the yield on a one year treasury bond is 6%, r* is 4%, and there is no maturity risk premium. 31- Calculate the interest rate on a one year treasury bond during its second year. b- What is the expected ination rate in year 1? Year 2

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