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3. Given below are the spot rates for one, two and three year zero coupon bonds. Based on these rates, what are the one year

3. Given below are the spot rates for one, two and three year zero coupon bonds. Based on these rates, what are the one year forward rates between years 1 and 2, and years 2 and 3?

YearSpot rate15.0%25.5%36.0%

4.50% and 5.00% respectively
5.00% and 6.01% respectively
6.00% and 6.51% respectively
6.00% and 7.01% respectively
None of the above

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