1. Assume the expectations theory of the term structure of interest rates holds. Assume also that at time t the interest rate on the one-year bond expected for t+2 is iet+2 = 4.75%, and the interest at t on a three-year bond is i3t = 4.417%. What is the interest rate on the two-year bond at t?

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2. Assume the expectations theory of the term structure of interest rates holds. Assume also that at time t the corresponding interest on a one-year, two-year and three-year bond are, it = 3.25%, i2t = 3.375% and i3t = 3.417%. What is the interest rate on the one-year bond expected for t+2? --------------

Please provide explanation and workings