Assume that the current interest rate on a one-year bond is 6 percent, the current rate on a two-year bond is 10 percent, and the current rate on a threeyear bond is 16 percent. If the expectations theory of the term structure is correct, what is the one-year interest rate expected during Year 3 ? (Base your answer on an arithmetic average rather than a geometric average.) 12% 10% 28% 13% 16%