1. Determine the par yield rates (yields to maturity on par bonds) and forward rates (the ones with ? below) based on the spot curve given below. Make sure that you show your work, not just the answers. Par yield rates Maturity(yr) 1 2 3 4 Spot Rates (%) 10 9 8 7 Par Rates(%) ? 9 ? 9 Forward Rates Year Forward Maturity (yr) 1 2 3 1 ? ? ? 2 ? ? N/A 3 ? N/A N/A (Note) Regarding terminology, for example, the 1 year maturity forward rate, 1 year forward, is the 1 year forward rate, one year from now (e. g., fm,n,t or f(m,n,t) with m=1 and n=2) and the 2 year maturity forward rate, 1 year forward, is the two year forward rate, one year from now (e. g., fm,n,t or f(m,n,t) with m=1 and n=3)