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05) Look at the spot rates bellow n1 = 6.00%, 12 = 6.40%, 13 = 6.80%, r4 = 7.00%, r5 = 7.50%, a. What is

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05) Look at the spot rates bellow n1 = 6.00%, 12 = 6.40%, 13 = 6.80%, r4 = 7.00%, r5 = 7.50%, a. What is the one-year spot interest rate in four years it. The expectation theory of term structure is right? Explain (03 lines) b. Investing in long-term bonds carries additional risks? Explain (03 lines)

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