6. As of October 16th of 2019, the yield of six month, one, two, three and five year U.S. treasury bonds are the following: 1.64%, 1.59%, 1.58%, 1.57%, 1.57%

1) Based on the information, plot yield curve.

2) Assuming that the pure expectation theory is the right theory of term structure, calculate the one-year interest rates over the next two years, that is it+1 and it+2.

3) If you plan to buy a 2-year bond next year, how much should you pay for the bond? (Hint: Relevant YTM is ie2t+1)