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3. The following rates are actual yields on US yield curve observed on the dates given: Date 1 Mo 2 Mo 3 Mo 6 Mo

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3. The following rates are actual yields on US yield curve observed on the dates given: Date 1 Mo 2 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr 9/27/2019 1.9 1.86 1.8 1.85 1.74 1.63 1.58 1.56 1.62 1.69 1.95 2.13 9/27/2021 0.06 0.03 0.04 0.05 0.09 0.31 0.56 0.98 1.3 1.48 1.95 1.99 a) Plot the yield curves for 27 September 2019 and 27 September 2021. Interpret these yield curves on investor expectations with regards to the future state of the US economy b) Given information about yields on 9/27/2021, i) calculate the expected 3-year yield that the market is expecting between 27 September 2023 and 27 September 2025. ii) calculate the 20-year yield that is expected to prevail between 27 September 2031 and 27 September 2041 under the expectations theory of the term structure of interest rates

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