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eBook The interest rate on one - year Treasury bonds is 1 . 0 percent, the rate on two - year T - bonds is

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The interest rate on one-year Treasury bonds is 1.0 percent, the rate on two-year T-bonds is 1.1 percent, and the rate on three-year T-bonds is 1.2 percent.
Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place.
%
Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place.
%

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