12. Problem 6.14 (Expectations Theory and Inflation) elook Suppose 2-year Treasury bonds yield 4.1%, while 1-year bonds yield 3.1%. r a. Using the expectations theory, what is the yield on a 1-year bond, 1 decimal places. is 2%, and the maturity risk premium is zero. year from now? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to t b. What is the expected inflation rate in Year 17 Year 27 Do not round intermediate calculations. Round your answers to two decimal places. Expected inflation rate in Year 1 Expected inflation rate in Year 211 % Grade it Now Save & Continue Continue without saving