1. (3pts) The annual yield rates on 4% coupon bonds maturing at $1000 par is as follows: Term (in years) and Annual yield rates: Yr. 1 = 5.5% Yr. 2 = 6% Yr. 3 = 6.5%. Determine all spot rates and all forward rates in the three years.

It is NOT supposed to read Yr. 1 = , Yr. 2 = , etc

Instead, its supposed to be Term (in yrs). Thus being Term 1 = , Term 2 = , Term 3 = .