Question: please show work 1. The current one-year interest rate is 1.50%; the current two-year interest rate is 3.5%, and the current three-year interest rate is

please show work

1. The current one-year interest rate is 1.50%; the current two-year interest rate is 3.5%, and the current three-year interest rate is 5%. a.) (2 pts) is the yield curve normal, inverted, or flat? cipl b.) (2 pts) Are future short-term interest rates expected to fall? Explain. c.) (6 pts) What is the 1-yr interest rate expected to be two years in the future? Show work

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