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Term rate 6 month 5.1 1 year 5.5 2 years 5.6 3 years 5.7 4 years 5.8 5 years 6 10 years 6.1 20 years

Term
rate
6 month 5.1
1 year 5.5
2 years 5.6
3 years 5.7
4 years 5.8
5 years 6
10 years 6.1
20 years 6.5
30 years 6.3

1.Calculate the 2 years interest rate 1 year from now, using the pure expectations theory.

2. Calculate the 5 years interest rate 5 year from now, using the pure expectations theory.

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