(10 points) Suppose most investors expect the rate of inflation to be 1 percent next year, 3 percent the following year, and 4 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 twoyear 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. Is your yield curve consistent with the three term structure theories? Hint: Treasury =(r+IP)+MRP