Suppose that the interest rate on a one-year Treasury bill is currently 7% and that investors expect that the interest rates on one-year Treasury bills over the next three years will be 8%, 9%, and 7%. Use the expectations theory to calculate the current interest rates on two-year, three-year, and four-year Treasury notes. The current interest rate on two-year Treasury notes is______%.

(Round your response to two decimal places.)The current interest rate on three-year Treasury notes is

______%.

(Round your response to two decimal places.)The current interest rate on four-year Treasury notes is

_______%.

(Round your response to two decimal places.)

Enter your answer in each of the answer boxes.