(10 marks) The following table shows the yield to maturity (YTM) of various types of bonds on October 13, 2017. U.S. Treasury Corp. AAA Corp. AA 2-year 1.495% 1.645% 1.733% 5-year 1.901% 2.223% 2.279% 10-year 2.274% 2.886% 2.983% a. What is the expected yield of a three-year treasury two years from the date above if the pure expectations theory holds? (3 marks) b. What explains the 0.322% difference in YTM between a 5-year U.S. Treasury and a 5-year AAA corporate bond? (3 marks) c. Explain why the shape of the Treasury yield curve is taken as an indicator of the state of the economy. (4 marks)