13. (10 marks) Prices of zero-coupon bonds reveal the following spot and forward rates: one-year spot rate =6% p.a., two-year spot rate =7% p.a., two-year forward rate for an investment to be made one year from now =8% p.a. One-year spot rate, y_(1) 6% Two-year spot rate, y_(2) 7% Two-year forward rate from the end of year 1 to year 3,_(1)f_(3) 8% In addition to the zero-coupon bonds, investors may purchase a three-year 10% coupon bond making annual coupon payments of $100 with a par value of $1,000. 15 Q13(a) Calculate the three-year spot rate, y_(3)