Question: Using the information, answer the following questions: One year spot rate Two year spot rate Three year spot rate 1.25% p.a. 1.30% p.a. 1.50% p.a.

Using the information, answer the following questions:

One year spot rate Two year spot rate Three year spot rate 1.25% p.a. 1.30% p.a. 1.50% p.a. What is the market consensus expectation of one year spot rates for delivery one vear from now? 20. What is the market consensus expectation of one year spot rates for delivery two years from now? 21. How is the one year spot rate expected to change over the next year?

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