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H . K Suppose we observe the following rates! TR1 E(2r1) E(3rl) E(41) E(5rl) Erl) 0.97% 3.12% 3.73% 5.28% 5.95% 6.27% a) If the unbiased

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H . K Suppose we observe the following rates! TR1 E(2r1) E(3rl) E(41) E(5rl) Erl) 0.97% 3.12% 3.73% 5.28% 5.95% 6.27% a) If the unbiased expectation theory of term structure of interest rates holds, Compute the following rates: IRI 0.97% IR2 1R3 1R4 5 1R5 51R6 7 3 b) Graph the Yield Curve 9 0 1

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