Forecasting Interest Rates - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Arial 12 A % be Paste BIU A Cells Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font C4 fo Assume the current interest rate on a 1-year Treasury bond (1R1) is 6.50 percent, A B D E F G H I J 4 Assume the current interest rate on a 1-year Treasury bond (GR) is 6.50 percent, the current rate on a 2-year Treasury bond (R2) is 7.25 percent, and the current rate on a 3-year Treasury bond GR3) is 8.50 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the 1-year forward rate expected on Treasury bills during year 3, 3f,? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 5 6 7 8 ,R, ,R ,R 6.50% 7.25% 8.50% 9 10 11 12 Complete the following analysis. Do not hard code values in your calculations. 13 14 15 2f1 3f1 16