As of November 6^th of 2017, the yield of one, two, three and five year U.S. treasury bonds are the following: 1.4%, 1.6%, 1.7% and 2%

Based on the information, plot the yield curve.

Assuming that the investors are risk averse, calculate the one-year interest rates for the forward rate of the two following years, that is i_t+1 and i_t+2.

If you are confident that the markets expectation on future interest rate is incorrect and that the forward rate of next year is i_t+1 = 2%, how can you capitalize on this information? Explain.