Assume ₁ = 1.5%, and also assume that the one-period spot rate next period can take the following two values with equal probability: ₁^u = 1.5% + = 1.5% + 0.5% and ₁^d = 1.5% = 1.5% 0.5%. Assume a Sharpe ratio of =0.5. If CAPM for bonds holds, calculate ₂, (₁ ), ₁¹ .