Actually you have the following term structure of spot interest rates on the market: Time (month) Interest rate 1 1.5% 2 1.8% 3 2.1% 4 2.2% a) Calculate two chosen forward rates (according to expectation theory) using continuous compounding interest rate method. b) If possible calculate (using compounding interest rate method) the forward rate that starts in one month and last four months. If no possible, comment why? Actually you have the following term structure of spot interest rates on the market: Time (month) Interest rate 1 1.5% 2 1.8% 3 2.1% 4 2.2% a) Calculate two chosen forward rates (according to expectation theory) using continuous compounding interest rate method. b) If possible calculate (using compounding interest rate method) the forward rate that starts in one month and last four months. If no possible, comment why