Question B.2 (3+3 = 6pts, 10min) Suppose that the yield to maturity of zero-coupon treasury bond from today up to year 1, year 2, and year 3 is 2%, 4%, and 6%, respectively. Yield to maturity is an annualized simple interest rate compounded annually. (a) What are the annualized zero rates from today up to year 1, year2, and year 3, i.e., Zos, 262, Zos, respectively? (b) If the expectations hypothesis holds, what are the expected future 1-year spot rate for the next two years, i.e., E[r2.2) and E[r21]? What is the expected future annualized spot rate from year 1 to year 3, i.e., E[r32]