Problem 3: (3 points) Suppose the interest rate on a 1-year T-bill is 3.5% and that on a 2-year T-note is 6.25%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bill but 0.35% for a 2-year note. What is the equilibrium market forecast for 1- year rates 1 year from now