suppose the yield to maturities are as follows

1period ytm: 8%

2period ytm: 6%

3 period yrm: 4%

4 period ytm: 4%

c. Using the Expectations Theory of Interest Rates, what do your results imply about future short-term interest rates? Explain your reasoning (DISCUSSION ONLY). e. Use the Expectations Theory of Interest Rates to determine the sequence of expected short term interest rates using the approximation method. That is, find the following values: liri+2, and lit+3 f. Use the Expectations Theory of Interest Rates to determine the sequence of expected short term interest rates using the exact method. That is, find the following values: lietu, lit+2, and its c. Using the Expectations Theory of Interest Rates, what do your results imply about future short-term interest rates? Explain your reasoning (DISCUSSION ONLY). e. Use the Expectations Theory of Interest Rates to determine the sequence of expected short term interest rates using the approximation method. That is, find the following values: liri+2, and lit+3 f. Use the Expectations Theory of Interest Rates to determine the sequence of expected short term interest rates using the exact method. That is, find the following values: lietu, lit+2, and its