3. Risk-free zero-coupon government bonds have the following terms and market prices. (a). Calculate the spot rates y1,y2,y3 and y4. (b). Calculate the implied forward rates for year 2 to 4 . Draw the yield curve and the forward rate curve in one diagram. (c). Under the liquidity preference hypothesis of the term structure, suppose that liquidity premiums are expected to remain constant at 1%. What are the expected short rates in year 2 to year 4