Thanks

Using the expectations theory, calculate the interest rates for years 1, 10, and 20 based on the following information (HINT: look back at the two previous questions): Inflation for Year 1 is 3% Inflation for Year 2 is 5% Inflation for Year 3 is 7% Inflation for Year 4 and beyond is 8% r = 3% MRP = 0,1% (t-1) The interest rates for Year 1, Year 10, and Year 20 are, respectively: a. 6.0%, 11.0%, 12.5% b. 0%, 8.0%, 9.5% O c. 6.0%, 22.0%. 24.9% Od. 6%, 17.0%, 23.5% Cliol Smp All Answers to save all answers