1. Assume that the pure expectations theory is correct and complete. If the forward rates over the second, third, fourth, and fifth periods are 5.9, 6.4, 6.7 and 6.9% respectively, what is the market's consensus opinion as to the value of the one-period spot rate that will be in existence at date 2? What is the market's consensus opinion as to the value of the two-period spot rate that will be in existence at date 1?