Question: Suppose 2-year Treasury bonds yield 3.2%, while 1-year bonds yield 2.6% 1%, and the maturity risk premium is zero. .. Using the expectations theory, what

Suppose 2-year Treasury bonds yield 3.2%, while 1-year bonds yield 2.6% 1%, and the maturity risk premium is zero. .. Using the expectations theory, what is the yield on a 1-year bond, 1 year from now? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two seama places h. What is the expected inflation rate in Year 1 Year 27 Do not round intermediate calculations, Round your answers to two decimal places Expected inflation rate in Year 1: Expected into rate in Year 21

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