T9

Suppose the interest rate on a 10 -year T-bond is 1.738% and that on a 20 -year T-bond is 2.238%. Assuming the pure expectations theory is correct, what is the market's forecast for 10 -year rates, 10 years from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places. 6.99%3.10%2.74%1.99%0.50%