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. The interest rate on one - year Treasury bonds is 0 . 6 % , the rate on two - year T - bonds

. The interest rate on one-year Treasury bonds is 0.6%, the rate on two-year T-bonds is 1.8%, and the rate on three-year T-bonds is 2.8%.
1. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place.
2. Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place.
Year 2 Interest Rate
Year 3 Interest Rate

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