Actually you have the following term structure of spot interest rates on the market: Time (weeks) 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 compounding interest rate method. b) If possible calculate (using simple interest rate method) the forward rate that starts in one week and three weeks. If no possible, comment why? Actually you have the following term structure of spot interest rates on the market: Time (weeks) 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 compounding interest rate method. b) If possible calculate (using simple interest rate method) the forward rate that starts in one week and three weeks. If no possible, comment why