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8. Given the following interest rates: Ri - 1.1%-0.011 R2 -1.4% -0.014 R3 -1.9%-0.019 R.-2.4% -0.024 8a. Calculate the short-term interest rate one year from

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8. Given the following interest rates: Ri - 1.1%-0.011 R2 -1.4% -0.014 R3 -1.9%-0.019 R.-2.4% -0.024 8a. Calculate the short-term interest rate one year from now. [10 points] 86. Calculate the short-term interest rate two years from now. [10 points] 8c. What is the interest rate on a two-year investment? 14 points] I 9. From Question 8, if an investor believes that the short-term interest rate one year from now is 1.6% and has the following two options: Option A: 1 2-year investment, one investment with a maturity of two years Option B:2 1-year investments, two investments with a maturity of one year Which option is better? Explain. 110 points) 8. Given the following interest rates: Ri - 1.1%-0.011 R2 -1.4% -0.014 R3 -1.9%-0.019 R.-2.4% -0.024 8a. Calculate the short-term interest rate one year from now. [10 points] 86. Calculate the short-term interest rate two years from now. [10 points] 8c. What is the interest rate on a two-year investment? 14 points] I 9. From Question 8, if an investor believes that the short-term interest rate one year from now is 1.6% and has the following two options: Option A: 1 2-year investment, one investment with a maturity of two years Option B:2 1-year investments, two investments with a maturity of one year Which option is better? Explain. 110 points)

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