The existing or current one-, two-, and three-year zero coupon Treasury security rates were as follows: 1R1 = 0.80 percent 1R2 = 1.26 percent 1R3 = 1.85 percent Using the unbiased expectations theory, what would the one-year forward rates on zero coupon Treasury bonds be for two and three years, respectively? A. Two years = 2.14, three years =2.56 percent. B. Two years = 2.25 percent, three years = 4.10 percent C. Two years = 3.65 percent, three years = 2.12 percent D. Two years = 1.72 percent, three years = 3.04 percent

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.