Question: Suppene layer Taway bunda yield 4.00 while 2-Year Tbonds vield 4 103. Assuming the pure expectations throxy is correct and thus ther maturity risk premium

Suppene layer Taway bunda yield 4.00 while 2-Year Tbonds vield 4 103. Assuming the pure expectations throxy is correct and thus ther maturity risk premium fix T bonds is zero what is the yield on a 1year T-bond expected to be one year from now Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places Oa41 420 357 4.49

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