Question: Term 1 2 3 Today 2% 3% 4% Based on the term structure above, according to the Expectations hypothesis, the market expects the 1 year

Term 1 2 3 Today 2% 3% 4% Based on theterm structure above, according to the Expectations hypothesis, the market expects the

Term 1 2 3 Today 2% 3% 4% Based on the term structure above, according to the Expectations hypothesis, the market expects the 1 year rate in 2 years to be 5,01% 0 4.05% 0 6,03% 4.01% As of today, your electric bill is $1,200 per year. The price of electricity is increasing at a rate of 3.00% per year. At this rate of inflation, how much will your electric bill be in 10 years? $1,580 O$1,248 $1,211 $1,629 $1,236 o $1,613

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