1a. Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows:

₁R₁ = 0.3%, E(₂r ₁) = 1.3%, E(₃r₁) = 10.4%, E(₄r₁) = 10.75%

Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities. (Round your answers to 3 decimal places. (e.g., 32.161))

1b.The Wall Street Journal reports that the rate on four-year Treasury securities is 1.3 percent and the rate on five-year Treasury securities is 2.8 percent. According to the unbiased expectations hypotheses, what does the market expect the one-year Treasury rate to be four years from today, E(₅r₁)? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

1c.Assume the current interest rate on a one-year Treasury bond (₁R₁) is 1.69 percent, the current rate on a two-year Treasury bond (₁R₂) is 1.85 percent, and the current rate on a three-year Treasury bond (₁R₃) is 1.96 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the one-year interest rate expected on T-bills during year 3 (E(₃r₁) or ₃f₁)? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

1d.Calculate the future value of the following annuity streams:

a. $8,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually.
b. $8,000 received each quarter for 5 years on the last day of each quarter if your investments pay 6 percent compounded quarterly.
c. $8,000 received each year for 5 years on the first day of each year if your investments pay 6 percent compounded annually.
d. $8,000 received each quarter for 5 years on the first day of each quarter if your investments pay 6 percent compounded quarterly.
  
(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

a. Future Value:

b. Future Value:

c. Future Value:

d. Future Value:

"One-year Treasury bills currently earn 3.25%; You expect that one year from now, 1-year Treasury bill rates will increase to 3.55% and that two years from now, one-year Treasury bill rates will increase to 4.15%; If the unbiased expectations theory is correct, what should the current rate be on three-year Treasury securities?"

3.56%

5.84%

3.42%

3.65%

3.93%

Consider the following time series data.

Excel File: data17-35.xls

b. Show the four-quarter and centered moving average values for this time series (to 3 decimals if necessary).

c. Compute seasonal indexes and adjusted seasonal indexes for the four quarters (to 3 decimals).

Use the information in the table above and construct the set of fixed rates of the interest rate swaps and the oil swap prices for 1 through 3 years. (Find a-f)

problem 08-23 Algo (Using Regression Analysis for Forecasting

Quarter:1,2,3,4

year 1: 2,0,5,5

year 2: 5,2,8,8

year 3: 7,6,10,10

Can you please show me how to step up excel spreadsheet for this problem. How to figure out the problems on this question.

One-year Treasury bills currently earn 2.25 percent. You expected that one year from now, 1-year Treasury bill rates will increase to 2.75 percent and that two years from now, 1-year Treasury bill rates will increase to 3.15 percent. If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

One-year Treasury bills currently earn 4.00 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 4.20 percent. The liquidity premium on 2-year securities is 0.06 percent. If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)