Expectation theory determines interest rates in the markets

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Assume that the Pure Expectation Theory determines interest rates in the markets. Today's market rates for different maturities as follows: 1 year= 3.2% 2 years=4.9% 3 years=5.2% 4 years=6.8% 5 years= 7.5% What is the implied 1 year interest rate of investing in 4 years? ANSWER IS: 10.3. Just need help solving.

Using market data, you estimate that the expected return of XYZ is 9.8%, while its standard deviation is 20.3%. What is company XYZ's coeffecient of variation? ANSWER IS: 2.07. Just need help solving, in EXCEL preferably if possible.

Reference no: EM131500189

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