Question: Suppose 1-year Treasury bonds yield 3.20% while 2-year T-bonds yield 4.10%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for

Suppose 1-year Treasury bonds yield 3.20% while 2-year T-bonds yield 4.10%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 1-year T-bond expected to be one year from now? Do not round your intermediate calculations. Round your final answer to 2 decimal places. a. 4.08% b. 3.65% c. 5.17% d. 3.47% e. 5.01%

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