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7. Based on economists' forecasts, the one-year T-bill rates for the coming 5 years are 32%, 2.6%, 2.9%, 3.1% and 3.5% respectively. () Based on

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7. Based on economists' forecasts, the one-year T-bill rates for the coming 5 years are 32%, 2.6%, 2.9%, 3.1% and 3.5% respectively. () Based on expectations theory (with geometric average), how much are you willing to pay for a 2-year bond? How about a 4-year bond? (ii)

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