3. (30 pts) At time 0, we observe the following zero-coupon rates in the market: Maturity Zero-Coupon (Years) Rate (%) 1 5.00 2 6.00 3 6.50 4 6.80 5 7.00 . a) What are the 1-year maturity forward rates implied by the current term structure? b) Over a long period, we observe the mean spreads between 1-year maturity forward rates and 1-year maturity realized rates in the future. We find the following liquidity premiums: L2 = 0.1% L3 = 0.175% L4 = 0.225% 15 = 0.250% Taking into account these liquidity premiums, what are the 1-year maturity future rates expected by the market