Expectations Theory One-year Treasury securities yield 2.45%. The market anticipates that I year from now. I-year Treasury securities will yield 6%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average. IX) not round your intermediate calculations. % A company's 5-ycar bonds arc yielding 9.65% per year. Treasury bonds with the same maturity arc yielding 5.9% per year, and the real risk-free rate (r*) is 2.2%. The average inflation premium is 3.3%. and the maturity risk premium is estimated to be 0.1 x (t - 1)%. where t number of years to maturity. If the liquidity premium is 0.65%. what is the default risk premium on the corporate bonds? % Suppose 2-year Treasury bonds yield 5.5%, while 1-year bonds yield 4%. r* is 1.75%. and the maturity risk premium is zero. Use minus sign for any negative expected inflation rate. Using the expectations theory, what is the yield on a 1-year bond 1 year from now? Calculate the yield using a geometric average. Do not round intermediate calculations. % What is the expected inflation rate in Year I? Do not round intermediate calculations. % What is the expected inflation rate in Year 2? Do not round intermediate calculations. %