Assume there were no events that changed investors perceptions about future interest rates and that the Pure Expectations Theory is correct. Based on the 01/02/2008 information, discuss the anticipated future 1-year interest rates over the next three years. Be sure to answer the following items: (a) Are interest rates expected to decrease orincrease, and if so, by how much? (b) If we expect interest rates to change, do we expect them to change at an increasing or decreasing rate? (c) Is there any economic news embedded in the forward rates that you can share with someone who has not studied the term structure of interest rates?

uruyrup Style below in the table are Treasury yield to maturities for several different dates 2008 is before the Great Recession, the date of 01/02/2009 is during the Grea e date of 03/20/2020 is during the CO-VID Crisis. 0.37 Term to maturity 0.5 year 1 year 2 years 3 years 5 years 7 years 10 years 20 years 30 years Yield to maturity (%) 01/02/2008 01/02/2009 03/20/2020 3.32 0.28 0.05 3.17 0.40 0.15 2.88 0.88 2.89 1.14 0.41 3.28 1.72 0.52 3.54 2.07 3.91 2.46 0.92 3.22 1.35 4.39 1.55 2.83 4.35 0.82 1 car cnot rate (oii), the forward rate