2. Suppose the current (e.g. Year 2022)1-year interest rate is 2 percent. The expected 1-year rates in the following four years (2023 to 2026) are 3 percent, 4 percent, 5 percent, and 5 percent. a. Assume the expectations theory of the term structure, with no term premiums. Compute the interest rates in 2021 on bonds with maturities of 1, 2, 3, 4, and 5 years; provided the computation steps. 1-year rate in 2022: 2-year rate in 2022: 3-year rate in 2022: 4-year rate in 2022: 5-year rate in 2022: Draw the yield curve based on your answer. b. Redo part (a) with term premiums. Assume the term premium for an n-year bond, tn, is (n/2) %. For example, the premium for a 4-year bond is (4/2)% = 2%. 1-year rate in 2022: 2-year rate in 2022: 3-year rate in 2022: 4-year rate in 2022: 5-year rate in 2022: Draw the yield curve based on your answer c. State briefly the difference between the two yield curves you drew