15. Problem 6.15(Expectations Theory) ook Assume that the real risk free rate is 2 and that the maturity riskpremium is zero. 1 a 1-year Treasury bond yields and a 2-year Treasury bond yields, what is the year interest rate that is expected for year 22 Calolate this yielding a geometric average. Do not round Intermediate calculations. Round your answer to two decimal places What inflation rate is expected during Year 27 Do not round intermediate calculation. Round your newer to two decimal places Comment on why the average interest rate during the 2-year period differs from the 1-year interest rate expected for Year 2. 1. The difference is due to the fact that we are dealing with very short term bonds. For longer term bonds, you would not expect an interest rate differential 11. The difference is due to the fact that there is no liquidity risk premium m. The difference is due to the inflation rate reflected in the two interest rates. The ination rate reflected in the interest rate on any security is the average rate of inflation expected over the security's IV. The difference is due to the rest free rate reflected in the two interest rates. The real risk-free rate reflected in the interest rate on any security is the average real rise free rate expected over the security We The difference is due to the fact that the maturity risk premium is raro