1. Suppose the annual interest rate for 2-year is 5%, and interest rate for one-year is 6%. For there to be no arbitrage, what is the implied one-year interest rate one year from today? Suppose you can lock in now a one-year interest rate at 5% that starts one year from today, can you design a trading strategy that yields positive profit? In this question, assume that you can borrow or lend at the prescribed interest rates.