1. If the one-year interest rate today is 2% and the two-year rate is 3%, what is the implied 1-year forward rate next year?

2. You purchase a twenty-year, 5% coupon bond with a face value of 100 at a yield-to-maturity of 5%. At the end of your two-year horizon you sell the bond at a yield of 4.5%. What is your rate-of-return if you reinvested at 4.5%?

Please answer questions with all work provided.