14. Problem 6.14 (Expectations Theory and Inflation) eBook Suppose 2-year Treasury bonds yield 3.9%, while 1-year bonds yield 2.9%. * is 1%, and the maturity risk premium is zero. Using the expectations theory, what is the yield on a 1-year bond, 1 year from now? Calculate the yield using a goometric average. Do not round Intermediate calculations Round your answer to two decimal places. b. What is the expected inflation rate in Year 19 Year 2? Do not round Intermediate calculations. Round your answers to two decimal places. Expected Inflation rate in Year 1 Expected Inflation rate in Year 2: %