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3. (Ch 3) (18 pts) Interest Rates. On September 30, 2022, the following interest rate on bonds with differing times to maturity was observed. Assume

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3. (Ch 3) (18 pts) Interest Rates. On September 30, 2022, the following interest rate on bonds with differing times to maturity was observed. Assume that the expectations theory is correct. so that there is no term premium for a two or three-vear bond. a. (2 pts) Use the information above to calculate the expected interest rate on a one-year bond one year from now. b. (2 pts) Use the information above to calculate the expected interest rate on a one year bond two years from now. c. (4 pts) i. (2 pt) The year before, on September 30, 2021, the rates on 1, 2, and 3 year bonds were 0.09%,0.28%, and 0.53%. Why were interest rates so low in 2021 ? (Hint: See article posted in Collab/Resources/Readings/Part II: USA Today - "Fed Signals Interest Rates..." 3. (Ch 3) (18 pts) Interest Rates. On September 30, 2022, the following interest rate on bonds with differing times to maturity was observed. Assume that the expectations theory is correct. so that there is no term premium for a two or three-vear bond. a. (2 pts) Use the information above to calculate the expected interest rate on a one-year bond one year from now. b. (2 pts) Use the information above to calculate the expected interest rate on a one year bond two years from now. c. (4 pts) i. (2 pt) The year before, on September 30, 2021, the rates on 1, 2, and 3 year bonds were 0.09%,0.28%, and 0.53%. Why were interest rates so low in 2021 ? (Hint: See article posted in Collab/Resources/Readings/Part II: USA Today - "Fed Signals Interest Rates

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