hi can explain to me how to solve the question step by step ? TQ 1. Assuming that the expectations theory is the correct theory of the term structure, calculate the interest rates in the term...

hi can explain to me how to solve the question step by step ? TQ

1. Assuming that the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturities of one to five years, and plot the resulting yield curves for the following series of one-year interest rates over the next five years. how would yields curves change if people preferred short term bonds over long-term bonds?

a. 5%, 7%, 7%, 7%, 7%

b. 5%, 4%, 4%, 4%, 4%

2. If the yield curve suddenly becomes steeper, how would you revise your predictions of interest rates in the future?