=+34. Let today be s = 0, the first reset date of a swap be T0

= 1/6 (i.e. in two months time), the cash flow dates be at Ti

= Ti–1 +1/4, i > 0, (i.e. every three months) and the swap maturity time be T4

= 7/6. At time s = 0 the instantaneous forward rate is given by f(0, t) = 0.05 + 0.01t.

(i) Find the corresponding term structure of bond prices P(0, Ti

), i = 0, .

. . , 4.