QUESTION 31 B1 The current spot rates (annualized) for maturities expressed in days are: 01 10=2.5%, 0130=3%, 0160=4%, oigo=5% and oi120=5.5%. The first subscript refers to the starting date of the investment while the second subscript refers to the term/maturity of the investment. [Note that the second subscript is NOT a date but a length.] Assuming that the expectations theory of interest rates holds, derive the market expectations 30i@60 implicit in the above term structure. Answer the question assuming daily. compounding, and 365 days in a year. Explain all the steps of your argumentation and show all the details of your calculations. Write your answers on a new sheet of paper preferably without lines; write your full name and student number at the top of the sheet; scan or take pictures of your answers; merge the pictures and convert into pdf; upload one pdf file on the link below. Keep the sheet with your answers and the pictures for future reference. QUESTION 31 B1 The current spot rates (annualized) for maturities expressed in days are: 01 10=2.5%, 0130=3%, 0160=4%, oigo=5% and oi120=5.5%. The first subscript refers to the starting date of the investment while the second subscript refers to the term/maturity of the investment. [Note that the second subscript is NOT a date but a length.] Assuming that the expectations theory of interest rates holds, derive the market expectations 30i@60 implicit in the above term structure. Answer the question assuming daily. compounding, and 365 days in a year. Explain all the steps of your argumentation and show all the details of your calculations. Write your answers on a new sheet of paper preferably without lines; write your full name and student number at the top of the sheet; scan or take pictures of your answers; merge the pictures and convert into pdf; upload one pdf file on the link below. Keep the sheet with your answers and the pictures for future reference