The expectations theory of the term structure of interest rates emphasizes the importance of investors' expectations when choosing bonds with different terms to maturity. According to this theory, bonds with the same risk characteristics are perfect substitutes, even if their terms to maturity differ. On the other hand, the segmented markets theory of the term structure of interest rates assumes that such bonds do not substitute for each other because investors prefer bonds with a particular term to maturity. The table below provides the current yield for one-year bonds today, and the expected yield on these bonds for the next three years. According to the expectations theory of the term structure of interest rates, the current yield for a two-year bond equals: Please enter 1 digit after the decimal point