Question: Pls help will rate Quantitative Problem: Today, interest rates on 1-year T-bonds yield 1.8%, interest rates on 2-year T-bonds yield 2.3%, and interest rates on
Quantitative Problem: Today, interest rates on 1-year T-bonds yield 1.8\%, interest rates on 2-year T-bonds yield 2.3%, and interest rates on 3 -year T-bonds yleid 3.4%. a. If the pure expectations theory is correct, what is the yleld on 1-year T-bonds one year from now? Be sure to use a geometric average in your calculations. Do not round intermediate calculations. Round your answer to four decimal places. % b. If the pure expectations theory is correct, what is the yield on 2-year T-bonds one year from now? Be sure to use a geometric average in your calculations, Do not round intermediate calculations. Round your answer to four decimal places. c. If the pure expectations theory is correct, what is the yield on 1-year T-bonds two years from now? Be sure to use a geometric average in your calculations. Do not round intermediate calculations. Round your answer to four decimal places
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