1. a. Assume the pure expectations theory of the term structure is correct. Right now (date 0) one-year pure-discount bonds yield 4%. Comparable two-year bonds yield 4.5%, and three-year bonds yield 5%. What does the market expect the nominal interest rate to be between date two and date three (during the period starting two years from now and ending three years from now)? Bc sure to show your calculations and explain your logic