Problem 07-04 (algo) Suppose that the interest rate on one-year bonds is currently 2.5 percent and is expected to be 3 percent in one year and 4 percent in two years. Using the expectations hypothesis, compute the yield curve for the next three years. Instructions: Enter your responses rounded to the nearest two decimal places.

Yield for one-year bond = %

Yield for two-year bond = %

Yield for three-year bond = %