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17. Take two spot-interest curves. One is much steeper than the other as shown in the table below: Curve 1 Curve 2 Year 1 1%

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17. Take two spot-interest curves. One is much steeper than the other as shown in the table below: Curve 1 Curve 2 Year 1 1% 1% Year 2 2% 4% Explain why forward interest (one year within one year) rates will be much lower with curve 1 than with curve 2. Also explain why 100 euros you receive on year 2 is worth less today according to curve 2 than according to curve 1

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