Question: Given data: Year 1 YTM 5 % , Year 2 YTM 5 . 2 5 % , Year 3 YTM 5 . 7 5 %

Given data: Year 1 YTM 5%,Year 2 YTM 5.25%, Year 3 YTM 5.75%, Year 4 YTM 6%, Year 5 YTM 6.20%, Year 6 YTM 6.40%,Year 7 YTM 6.80%, Year 8 YTM 7%, Year 9 YTM 7.30%, Year 10 YTM 7.80%
Given data: Year 1 liquidity premium 0%, Year 2 liquidity premiuim 0.10%, Year 3 liquidity premium 0.20%, Year 4 liquidity premium 0.30%, Year 5 liqudity premium 0.40%, Year 6 liquidity premium 0.50%, Year 7 liquidity premium 0.60%, Year 8 liquidity premium 0.70%, Year 9 liquidity premium 0.80%, Year 10 liquidity premium 0.90%
1. Calculate the expected one year interest rates under the expectations theory.
 Given data: Year 1 YTM 5%,Year 2 YTM 5.25%, Year 3

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