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QUESTION 7 Suppose the interest rate on a 1-year T-bond is 6.1 % and that on a 3 year T-bond is 7.4 %. Assuming the

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QUESTION 7 Suppose the interest rate on a 1-year T-bond is 6.1 % and that on a 3 year T-bond is 7.4 %. Assuming the pure expectations theory is correct, what is the market's forecast for 2-year rates 1 year from now? Enter your answer as a percentage and do not use the % symbol

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