Suppose you believe in the Unbiased Expectations Hypothesis (as opposed to the Liquidity Premium hypothesis). You can see that the 5-year US T-Note yield is 4.2598%. The 2-year T-Note is currently trading at 4.8711%. What is the expected rate of return on 3-year T-Notes, two years from now? (Answer to 4 decimals as in 1.2345%.) 2R3 = __________ % Does your answer indicate that the demand for 3-year loanable funds, two years from now, will be higher or lower? (Circle one: HIGHER LOWER)