Consider the following spot interest rates for maturities of one, two, three, and four years.

r₁= 3.7%r₂= 4.2%r₃= 4.9%r₄= 5.7%

What are the following forward rates, wheref_k,1refers to a forward rate beginning inkyears and extending for 1 year?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

f2,1 ____%

f3,1 ____%

Consider the following spot interest rates for maturities of one, two, three, and four years.

r₁= 4.1%r₂= 4.5%r₃= 5.2%r₄= 6.0%

Assuming a constant real interest rate of 2 percent, what are the approximateexpected inflation rates for the next four years?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places

l1 ___%

l2 ___%

l3 ___%

l4 ___%