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(23 - 25) Assume that the expectations of one year interest rates are as follows: Year 1 6% Year 2 5% Year 3 8% Year

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(23 - 25) Assume that the expectations of one year interest rates are as follows: Year 1 6% Year 2 5% Year 3 8% Year 4 5% Based upon the Expectations Theory, determine the: (23) Interest rate on a security with a 2 year maturity (24) Interest rate on a security with a 3 year maturity (25) Interest rate on a security with a 4 year maturity

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