1. You are given the following table of the one-year forward zero curves for each credit rating Category Year 1 (%) 3.40 3.50 3.60 4.21 5.23 8.75 14.25 Year 2 (90) 3.80 4.10 4.55 5.89 6.89 9.22 15.65 Year 3 (96) 4.21 5.12 5.19 6.24 7.58 10.52 16.88 Year 4 (%) 5.13 5.48 5.90 6.99 8.05 11.25 17.99 Year 5 (%) 5.99 6.89 7.58 8.52 9.78 12.33 18.15 You have a portfolio of 2 bonds. One is BBB rated 6-year senior unsecured bond with the face value of $20 million and the coupon rate of 4% per annum paid annually. The other is B rated junior subordinated 6-year bond with the face valu