1) The effective annual interest rate for the coming year is 8%. The effective annual 1-year forward rate of interest is 8.5%. The effective annual 3-year forward rate of interest is 9%. You are given that the present value of a 4-year annuity immediate of 1 per year is 3.283969. Find the effective annual 2-year forward rate of interest.

2) Three 10-payment annuities-immediate are valued at annual effective rate of interest 10%. They are listed as follows: I: level payments of 55 every year for 10 years, II: increasing payments for 10 years with payment amounts 10, 20, 30, , 90, 100, III: decreasing payments for 10 years with payment amounts 100, 90, 80, , 20, 10. Calculate the Macaulay duration of the 3 sets of cashflows and rank them from smallest to largest.