Rene Leiaya

U$5/04/251$:$46$ FM

HW Scors: $60\%,6$ of $10$ points

Question $3,$ P$6-9($similar to$)$

$0$

Points: $0$ of $1$

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Term Structure A $1-$year Treasury bill currently offers a $5\%$ rate of retum. A $2-$year Treasury note offers a $5\mathrm{.}5\%$ rate of return. Under the expectations theory, what rate of return do investors expect a $1-$year Treasury bill to pay next year?

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The rate of return investors expect a $1-$year Treasury bill to pay next year is $5.($Round to two decimal places.$)$