Question $34$

$2$ pts

A one$-$year and two$-$year bonds currently pays $3\mathrm{.}8\%$ and $4\%,$ respectively. What is the expected interest rate on a one$-$year bond next year according to the expectations theory?

$0\mathrm{.}2\%$

A$.2\%$

$4\mathrm{.}15\%$

$3\mathrm{.}9\%$

$$