Latest yield data available for Canadian Yields are as follows. Each rown represents a zero-coupon bond. The columns represent maturity in years.

Date	1 yr		2 yr		3 yr		4 yr		5 yr		10 yr		15 yr		20 yr		25 yr		30 yr
16-04-2015	0.64%		0.54%		0.58%		0.68%		0.80%		1.42%		1.89%		2.12%		2.16%		2.12%
17-04-2015	0.66%		0.59%		0.63%		0.72%		0.84%		1.46%		1.90%		2.12%		2.15%		2.12%
20-04-2015	0.68%		0.61%		0.65%		0.75%		0.87%		1.47%		1.92%		2.13%		2.17%		2.13%
21-04-2015	0.70%		0.61%		0.65%		0.76%		0.89%		1.50%		1.94%		2.14%		2.18%		2.14%
22-04-2015	0.69%		0.63%		0.69%		0.80%		0.94%		1.55%		1.98%		2.19%		2.22%		2.18%
23-04-2015	0.69%		0.62%		0.67%		0.78%		0.91%		1.54%		1.97%		2.17%		2.21%		2.17%
24-04-2015	0.71%		0.59%		0.64%		0.74%		0.87%		1.49%		1.93%		2.14%		2.18%		2.14%
27-04-2015	0.69%		0.61%		0.65%		0.75%		0.88%		1.51%		1.95%		2.16%		2.20%		2.16%
28-04-2015	0.69%		0.64%		0.70%		0.82%		0.96%		1.61%		2.04%		2.25%		2.29%		2.25%
29-04-2015	0.70%		0.64%		0.71%		0.83%		0.98%		1.65%		2.08%		2.28%		2.32%		2.28%
30-04-2015	0.72%		0.65%		0.71%		0.84%		0.98%		1.66%		2.08%		2.27%		2.31%		2.27%

1-Use the expectations hypothesis to calculate and predict interest rates as follows:

a-If the one-year interest rate is expected to be the same as the yield curve over the next three years, what interest rate is expected on a two-year bond one year from now?

b-What interest rate is expected on a three-year bond one year from now?

c-What relationship do you find between interest rates and maturity?

d-If investors attach term premiums of 0.0025, 0.0075 and 0.0085 to the one-, two- and three- year bonds:

i-What would be the interest rate on a two-year security?

ii-What would be the interest rate on a three-year security?

iii-What is the forward rate for one-year Canada bonds one year from now?

iv-What is the adjusted forward rate for one-year Canada bonds one year out?

2-After describing the current yield curve and forecasting interest rates using both the expectations and preferred habitat and liquidity premium methods above,

a-What is your recommended minimum interest rate for the five-year fixed rate loans?

b-How would this rate be adjusted for customers that have some credit risk?