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Term Structure A 1-year Treasury bill currently offers a 5% rate of return. A 2-year Treasury note offers a 5.5% rate of return. Under the

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Term Structure A 1-year Treasury bill currently offers a 5% rate of return. A 2-year Treasury note offers a 5.5% rate of return. Under the expectations theory, what rate of retum do investors expect a 1-year Treasury bill to pay next year? The rate of retum investors expect a 1-yeat Treasury bill to pay next year is % (Round to two decimal places.) A(n) gives purchasers inflation protection. O A. junk bond O B. zero - coupon bond O C. floating rate bond OD. income bond

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