1. Suppose that it is now 2020, The one-year interest rate for 2020 is 496. Suppose that the expected one-year interest rates for the next four years are as follows: 2021-496, 2022 5%, 2023 696, and 2024-6%. A. Using the pure expectations theory (i.e. the one without term premiums), compute the interest rates in 2020 on bonds with maturities of 1, 2,3, 4, and 5 years. B. Now, suppose that there exist term premiums such that the term premium for a bond that matures in n years is equal to (n/2)%. For example, the term premium for a bond that matures in 4 years is equal to (4/2)% 2%. Compute the interest rates in 2020 on bonds with maturities of 1, 2, 3, 4, and 5 years using the preferred habitat theory. C. What can you conclude regarding the yield curves for part (A) and part (B) above? BE SPECIFIC