3. Let s be equal to the last digit of your student ID card. (If the last digit of your ID card is zero, please use 8 instead.) The following yield curve is given: Term Spot rates 1 s% 2 (s+1)% 3 (s+2)% 4 (s+3)% (a) Calculate all the possible forward rates that this information allows you to determine. 15 marks (b) Consider a bond with a par value of 1,000 redeemable at par, a term of maturity of 4 years, and a coupon rate of 8% payable annually. (i) Calculate the price of the bond for the given yield curve, 15 marks (ii) Calculate the par yield rate of the bofyd. 4 marks (iii) Set up the equation for calculating the yield rate of the bond. [3 marks (iv) Without doing any calculations, discuss the Macaulay duration of the bond. 3 marks 3. Let s be equal to the last digit of your student ID card. (If the last digit of your ID card is zero, please use 8 instead.) The following yield curve is given: Term Spot rates 1 s% 2 (s+1)% 3 (s+2)% 4 (s+3)% (a) Calculate all the possible forward rates that this information allows you to determine. 15 marks (b) Consider a bond with a par value of 1,000 redeemable at par, a term of maturity of 4 years, and a coupon rate of 8% payable annually. (i) Calculate the price of the bond for the given yield curve, 15 marks (ii) Calculate the par yield rate of the bofyd. 4 marks (iii) Set up the equation for calculating the yield rate of the bond. [3 marks (iv) Without doing any calculations, discuss the Macaulay duration of the bond. 3 marks