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Using the information from the prior problem, what rate (in %s ) do you expect a 5 -year bond to have? From Prior: You observe

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Using the information from the prior problem, what rate (in %s ) do you expect a 5 -year bond to have? From Prior: You observe that there is a one-year Treasury bond with a yield of 3.0%. You also assume that rates will increase and that the onc-year bond will increase by 1.0% each year. For example, you expect the one-year bond in year 2 will be 4.0% and 5.0% in year 3

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