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3. Given the following bonds and prices of bonds, what are the spot rates and forward rates? Bond Price 4 1,000 960 920 885 855

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3. Given the following bonds and prices of bonds, what are the spot rates and forward rates? Bond Price 4 1,000 960 920 885 855 1,000 1,000 1,000 4. Given the cash flows shown below, does the law of one price hold? If not, what is the price of bond C that will make it hold? Cash Flows in Period Bond 2 1,080 1,120 Price 80 1,100 120 982 880 1,010 3. Given the following bonds and prices of bonds, what are the spot rates and forward rates? Bond Price 4 1,000 960 920 885 855 1,000 1,000 1,000 4. Given the cash flows shown below, does the law of one price hold? If not, what is the price of bond C that will make it hold? Cash Flows in Period Bond 2 1,080 1,120 Price 80 1,100 120 982 880 1,010

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