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3. (10 points) Assume that Expectations Theory of the term structure of interest rates is true. Current yields on bonds of maturities 1 year through

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3. (10 points) Assume that Expectations Theory of the term structure of interest rates is true. Current yields on bonds of maturities 1 year through 5 years are given by: 4%, 3%, 3%, 4%, 4% Back out the expected current and expected future 1-year interest rates for the next five years from the information in the yields on bonds with maturities 1 through 5 year given above

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