Recall that on a one-year Treasury security the yield is 4.9200% and 7.3800% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.25%.

What is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%. Assuming that the pure expectations theory is correct,

what is the market’s estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.)