Question: Problem 9 Intro 1-year T-bills yield 5% and 2-year Treasury notes yield 8%. The real risk-free rate of interest is 4% and expected to stay

Problem 9 Intro 1-year T-bills yield 5% and 2-year Treasury notes yield 8%. The real risk-free rate of interest is 4% and expected to stay constant, while the maturity risk premium is zero. Attempt 1/6 for 5 pts. Part 1 Using the expectations theory, what is the yield on a 1-year risk-free bond, one year from now? 3+ decimals

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