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7- Suppose 1-year Treasury bonds yield 4.00% while 2-year T-bonds yield 4.40%. Assuming the pure expectations theory is correct, and thus the maturity risk premium

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7- Suppose 1-year Treasury bonds yield 4.00% while 2-year T-bonds yield 4.40%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a l-year T-bond expected to be one year from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places. a. 4.80 b. 5.71 c. 3.79 d. 5.09 e. 5.23

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