(c) What is, according to the expectations theory, the one-year interest rate in the forth year? (6 marks)

The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. Suppose the interest rate is compounded once per year. Answer the following questions: (a) What is, according to the expectations theory, the one-year interest rate in the second year? (7 marks) (b) What is, according to the expectations theory, the one-year interest rate in the third year? (7 marks)