Question: Suppose 1-year Treasury bonds yield 4.70% while 3-year T-bonds yield 4.30%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for

Suppose 1-year Treasury bonds yield 4.70% while 3-year T-bonds yield 4.30%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 2-year T-bond expected to be one year from now? 4.83% 4.26% 4.10% 3.98% 5.25%

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