Assume the real risk$-$free rate of return, $r^{**},$ is $3\mathrm{.}00$ percent, and is expected to remain constant into the future. Following are the expected inflation rates for the next three years: Year $1=4\mathrm{.}00\%,$ Year $2=3\mathrm{.}25\%,$ and Year $3=1\mathrm{.}50\%$

A$.$ Calculate the interest rate for a one$-,$ two$-,$ and three$-$year bond.

B$.$ Based on the interest rates calculated in part $B,$ what type of yield curve would you expect to see?