You must show all your work/computations to receive full credit. You must submit your solutions on Canvas using one of these formats: Word, PDF, or Excel. Submit one file only. 1. Suppose most investors expect the rate of inflation to be 2 percent next year, 4 percent the following year, and 3 percent thereafter. The real risk-free rate is 3 percent. The maturity risk premium is zero for bonds that mature in one year or less, 0.1 percent for two-year bonds; the MRP increases by 0.1 percent per year thereafter for 20 years, then becomes stable. What is the interest rate on one-year, 10-year, and 20-year Treasury bonds? Draw a yield curve with these data. 2. Following is information about existing yields on U.S. Treasury bonds: Maturity Yield 1 year 0.2% 2 years 0.5 3 years 0.9 4 years 1.2 5 years 1.6 Using the expectations theory, compute the expected interest rates (yields) for each bond one year from today. What will be the rates three years from today