D Question 7 1 pts One year government bonds yield 7.5 percent and 3-year government bonds yield 6.9 percent. Assume that the expectations theory holds. What does the market believe the rate on 2 year government bonds will be one year from today? 6.70% 6,40% 6.50% 6,60% 6.80% Question 8 1 pts You observe the following yield curve for treasury secues Maturity Yield 1 Year 3.2096 2 Years 4.40% 3 Years 5.2096 4 Years 5.40% 5 Years 7.40% Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 3-year securities. 2 year from today