question 1: Part A: The one year interest rate now = 4%. Your...

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Finance

question 1:
Part A: The one year interest rate now = 4%. Your forecast of the one-year rate next year (one year forward) is 4.6%. According to expectations theory, what should be the two-year interest rate now?
Part B: The one year interest rate now = 5%. The forecast one-year forward rates are 5.2% (next year) and 5.4% (the following year). According to expectations theory, what should be the three-year interest rate now?
Part C: The one year interest rate now is 7.2%. The two year interest rate now is 6.3%. What is the implied one-year interest rate next year (1-year forward)?
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