Today, you observed the following information in the bond-related market. All the rates are annualised. i_T is the current interest rate for a T-year bond, i^e_1,t is the expected interest rate (of a 1-year bond) invested at time t.

	Interest Rate			Future Expected Interest Rate
i1	5.23%		ie1,0	(Missing 3)
i2	(Missing 1)		ie1,1	4.62%
i3	(Missing 2)		ie1,2	4.61%

* M = month; Y = year

1. Using the Expectations Theory, fill the three missing spaces in the above table with detailed steps and then briefly comment on your results.

(20 marks)

2. Explain in detail the assumptions of Expectations Theory you use to get the missing information.

(10 marks)

3. Plot the interest rate term structure as of today and comment your plot.

(20 marks)