Problem
Forward Interest Rates According to the pure expectations theory of interest rates, how much do you expect to pay for a 1-year STRIPS on February 15, 2001? What is the corresponding implied forward rate? How does your answer compare to the current yield on a 1-year STRIPS? What does this tell you about the relationship between implied forward rates, the shape of the zero-coupon yield curve, and market expectations about future spot interest rates?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.