You can calculate the vield curve, given inflation and maturity related risks, tooking at the vield curve, you can use the informution embedded in it to estimate the market's expectations regarding future miliation, nak, and short-term interest rates. The theory states that the shape of the yild furve depends on investars" expectations about future interest rates. The theory atsumes that bond troders establish bond pross and interest rates strictly on the basis of expectations for future interest rates and that they are indifferent to maturify becaus information you could determine what the veld on a 1 -year T.bond one year from now would be. Investers weh a 2-year horvon could invest in the 2 -year 1 -bond or they could invest in a 1 -yea market was in equibrum. Quantitative Problem: Todoy, interest rates on 1 -year T-bands vield 1.4%, interest rotes on 2 -year T bonds yeld 2%, and interest rates an 3 year T-bonds yield 3.2%. calculations: Round your answer to four decimal places: calculationt. Hound vour ansmer to four decamal places: calcatations, hlound your ansher to four decimal places. You can calculate the vield curve, given inflation and maturity related risks, tooking at the vield curve, you can use the informution embedded in it to estimate the market's expectations regarding future miliation, nak, and short-term interest rates. The theory states that the shape of the yild furve depends on investars" expectations about future interest rates. The theory atsumes that bond troders establish bond pross and interest rates strictly on the basis of expectations for future interest rates and that they are indifferent to maturify becaus information you could determine what the veld on a 1 -year T.bond one year from now would be. Investers weh a 2-year horvon could invest in the 2 -year 1 -bond or they could invest in a 1 -yea market was in equibrum. Quantitative Problem: Todoy, interest rates on 1 -year T-bands vield 1.4%, interest rotes on 2 -year T bonds yeld 2%, and interest rates an 3 year T-bonds yield 3.2%. calculations: Round your answer to four decimal places: calculationt. Hound vour ansmer to four decamal places: calcatations, hlound your ansher to four decimal places