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please solve 1, 2, and 3. 1. The Wall Street Journal reports that the rate on three-year Treasury securities is 3.40 percent and the rate

please solve 1, 2, and 3. image text in transcribed
1. The Wall Street Journal reports that the rate on three-year Treasury securities is 3.40 percent and the rate on four-year Treasury securities is 2.65 percent. According to the unbiased expectations hypothesis, what does the market expect the one-year Treasury rate to be in year 4, El)? 2. According to the Market Segmentation Theory (MST), what can you conclude about the 2-year and 5-year Treasuries according to the Yield Curve displayed below? Yield Curve 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 3. Month 6 - Month 1 Year 2-Year 5 Year 10-Year 30-Year 3. The Wall Street Journal reports that the rate on three-year Treasury securities is 7.25 percent and the rate on four-year Treasury securities is 8.70 percent. The one-year interest rate expected in year four is Elar), 9.25 percent. According to the liquidity premium hypothesis, what is the liquidity premium on the four-year Treasury security, L

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