You observe the following yield curve for Treasury securities: Maturity Yield 1 Year 3.50% 2 Years 4.60% 3 Years 5.40% 4 Years 5.50% 5 Years 6.10% Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 4-year securities, 1 year from today? O 7.05% 6.15% O 6.45% 0 6.75% O 5.85% Given the following data, find the expected rate of inflation during the next year. ri= real risk-free rate = 2.00%. Maturity risk premium on 10-year T-bonds = 2%. It is zero on 1-year bonds, and a linear relationship exists. Default risk premium on 10-year, A-rated bonds = 1.5%. Liquidity premium = 0%. Going interest rate on 1-year T-bonds = 5.00%. 0 2.4% 0 2.1% O 3.0% 3.3% 0 2.7% dolines