3. [8pts] Assume the following yield curve for zero-coupon bonds with a face value of 100:- Maturity 1 Year 2 Years 3 Years 4 Years 5 Years YTM 7% 8% 8% 7% 6% (1) [4pts] Using implied forward rates, estimate the yield curve one-year from the present (rates on one-year, two-year, three-year, and four-year bonds). (2) [4pts] If you bought the three-year bond and held it for one year, what would your expected rate of return be if your calculations were based on implied forward rates? 3. [8pts] Assume the following yield curve for zero-coupon bonds with a face value of 100:- Maturity 1 Year 2 Years 3 Years 4 Years 5 Years YTM 7% 8% 8% 7% 6% (1) [4pts] Using implied forward rates, estimate the yield curve one-year from the present (rates on one-year, two-year, three-year, and four-year bonds). (2) [4pts] If you bought the three-year bond and held it for one year, what would your expected rate of return be if your calculations were based on implied forward rates