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5. Assume that the expectations theory holds, and that liquidity and maturity risk premiums are zero. If the annual rate of interest on a 4-year

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5. Assume that the expectations theory holds, and that liquidity and maturity risk premiums are zero. If the annual rate of interest on a 4-year Treasury bond is 2.0 percent and the rate on a 2-year Treasury bond is 1.75 percent, what rate of interest should you expect on a 2-year Treasury bond, two years from now? Answer in X.XX% format without the percentage sign, so X.XX

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