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Suppose the inlerest rate on a 1-year T-bond is 5.00% and that on a 2 -year T-bond is 6.40%. Assume that the pure expeciations theory

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Suppose the inlerest rate on a 1-year T-bond is 5.00% and that on a 2 -year T-bond is 6.40%. Assume that the pure expeciations theory is NOI valid, now? Round the intermediate calculations to 4 decinal places and finat abawer to 2 decimal places. a. 6.10% b. 5.82% conon d. 6.66% e. 7.01%

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