4. A recent edi ecent edition of the Wall Street Journal reported interest rates of 2.5%, 2.80%, 3.0%, and 3.25% for the three-year, four-year, fi % for the three-year, four-year, five-year, and six-year Treasury note yields, respectively. According to the unbiased expectation the term structure of interest ra Structure of interest rates, what are the expected one-year rate during years 4 and 5? (8 points) 5. Calculate the duration for a $1000. 5-year bond with a 8% annual coupon, market rate is 7%. Use the duration to estimate the percentage change in the bond's price for an increase of 0.5% in the market interest rate. Use the bond price volatility equation to compute the bond price volatility. Compare the result with the estimated percentage change in the bond price (11 points). TO o 6. Use the following information to answer 6a-6c: Treasury Bills, 90 days han 1.50% no mund Commercial Paper, 90 days 1.95% Treasury Bill, 1 year 2.00% Treasury Note, 2 year 2.50% Treasury Note, 3 year 2.80% Cornorate Bond AA, 20 year 8.00%