Stock? Suppose the annual yield on a two-year Treasury bond is 7.5 percent, the yield on a one-year bond is 5 percent, r* is 3 percent, and the maturity risk premium is zero (0) a. Using the expectations theory, forecast the interest rate on a one-year bond during the second year. b. What is the expected inflation rate in Year 12 Year 2? Assume that the rool 5 Stock? Suppose the annual yield on a two-year Treasury bond is 7.5 percent, the yield on a one-year bond is 5 percent, r* is 3 percent, and the maturity risk premium is zero (0) a. Using the expectations theory, forecast the interest rate on a one-year bond during the second year. b. What is the expected inflation rate in Year 12 Year 2? Assume that the rool 5