Pure Expectations Theory Suppose 2-year Treasury bonds yield 4.5%, while 1-year bonds yield 3%. r* is 1%. Assume that expectations theory holds. Question 8 (0.3 points) Using the expectations theory, choose one closest to the yield on 1-year bond 1 year from now. 4% 05% 6% 07% 8% Question 9 (0.3 points) What are the expected inflation rates in year 1? 1% 02% 3% O4% 5% Question 10 (0.3 points) What are the expected inflation rates in year 2