3. Two Treasury bonds are traded as below (coupons are paid semiannually). Time to maturity 6 months 12 months Annual coupon rate 0% 3.5% Bond price $99 $101 (a) Estimate the 6-month and 12-month risk-free interest rates. (5 marks) (b) Calculate the price of a one-year Treasury bond providing a coupon rate of 4% per annum with semiannual payment. (5 marks) (c) Calculate the 6-month forward rate beginning in 6 months