The? 1-year interest rate is 7%. The? 1-year interest rate expected in 1 year is 5%. The? 1-year interest rate expected in 2 years is 7%. What are the? 2-year and? 3-year interest rates predicted by the pure expectations? theory?
The? two-year spot rate is _____?%.(Round to two decimal? places).
The? three-year spot rate is ____ ?%. (Round to two decimal? places).