5IP age 5. Assume that the real risk free rate is 2% and that the maturity risk pre bond yield is 5% and a 2 year bond (of similar risk) is 7%, (a) What is the 1 year interest rate that is expected for year 2 as per expectations theory (b) What is the inflation rate expected during the year 2? mium is 0 . If the 1-year