Suppose that the yield curve shows that the one$-$year bond yield is $7$ percent, the two$-$year yield is $6$ percent, and the three$-$year yield is $6$ percent. Assume that the risk premium on the one$-$year bond is zero, the risk premium on the two$-$year bond is $1$ percent, and the risk premium on the three$-$year bond is $2$ percent.