interest-rates

I have a question related to the evolution of short term interest rates, in case of upward sloping curve i.e. r0,1 is 10% and E(r1,2) is 12% and E(r2,3) is 14% and volatility around the expectation of interest rates is 200bps. How would you construct the tree, what would be the values at t=1 for...

The full specification of a rate is something like "discount at 8.0% per annum with annual compounding" or "compound at 8.0% per annum with continuous compounding). David's XLS is here: https://www.dropbox.com/s/dcxd8qp8xrp7big/0328-irate-compound-freq.xlsx?st=rtruoiqf&dl=0