(e) correct answer : A one-year interest rate is 5.50% and a one-year forward rate two years from now is 6.0%. According to the expectations theory, what is the current two-year rate? a. The rate cannot be calculated from the information above. b. 5.0% c. 5.5% d. 6.0% e. 6.25% SHOW ME HOW TO CALCULATE THIS WITH CALCULATOR OR WORK IT OUT

(c) is the correct answer. According to the expectations theory, what is the one-year forward rate three years from now if three and four-year spot rates are 5.50% and 5.80%, respectively? a. The rate cannot be calculated from the information above. b. 6.2% c. 6.7% d. 5.6% e. 5.8% SHOW ME HOW TO CALCULATE THIS WITH CALCULATE OR WORK IT OUT TO GET THIS ANSWER