3.a. If the current 1-year spot rate is 3%, the 1-year forward rate one year from today (lyly) is 4%, and the 1-year forward rate two years from today (2yly) is 2%, what is the 3-year spot rate? (5 Marks) 3.b. Consider a bond with a YTM of 12%. Estimate the percentage change in the full price of the bond for a 50-basis point decrease in YTM assuming the bond's duration is 7.70 and its convexity is 86.43