Assume that the interest rate on a $2-$year Treasury Note is currently $12\%$ and the interest rate

on a one$-$year T$-$Bill is $8\%.$ According to the expectations hypothesis, the expected in interest

rate on a one$-$year T$-$Bill for next year must be

$10\%$

$20\%$

$4\%$

$-4\%$