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1.(14) Given the following spot interest rates, compute the implied (expected) rates at the ? mark using the expectations model of the term structure. If

1.(14) Given the following spot interest rates, compute the implied (expected) rates at the ? mark using the expectations model of the term structure. If there is a liquidity premium of 0.30%, what would be the actual rate for 3r1?

0R1 = 1.1% 1r1 = ? 2r1 = ? 3r1 = ?
0R2 = 1.7% 1r2 = ? 2r2 = ?
0R3 = 2.4% 1r3 = ?

0R4 = 3.2%

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