1. What is the 3-year implied spot rate (given the information below). Note: All rates are annual rates stated for a periodicity of one (effective annual rates).

2. Given the information from the previous problem, what is the value per $100 of par value of a two-year, 4.00% coupon bond, with interest payments paid annually?

Forward Rate 1.0000% 1.5000% 2.0000% 2.5000% 3.0000% Time Period Oy1 1y1 3y1 4y1