Suppose that the interest rate on one$-$year bonds is currently $3\mathrm{.}5$ percent and is expected to be $3$ percent in one year and $2$ percent in two years. Using the expectations hypothesis, compute the yield curve for the next three years.

Instructions: Enter your responses rounded to the nearest two decimal places.

Yield for one$-$year bond $=$

$\%$

Yield for two$-$year bond $=$

$\%$

Yield for three$-$year bond $=$

$\%$