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3.3 Suppose the forward rates of interest for investments in year 1,2,3 and 4 are, respectively, 6%,6.2%,6.5% and 7%. (a) Calculate the spot rates of

image text in transcribed 3.3 Suppose the forward rates of interest for investments in year 1,2,3 and 4 are, respectively, 6%,6.2%,6.5% and 7%. (a) Calculate the spot rates of interest i1S,i2S,i3S and i4S. (b) Calculate a4 and s4

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