4. Following table provides the information on the effective annual spot rates. Maturity 0.5 1 1.5 2 2.5 3 3.5 4 4.55 5.5 6 Spot Rate (%) 3.53 3.44 3.25 3.69 3.78 3.89 3.90 3.98 4.10 4.12 4.20 4.25 What are the six-month forward rates (effective annual) for each period? Use excel to draw the spot rate curve and the forward curve. b. What is the price of a forward contract in which a 3-year 6% coupon bond will be delivered in year 3? Assume coupon is paid semiannually with $3 per payment and assume $100 par value. C. Suppose one year later, all spot rates increase by 10 basis points, what is the market value of the above forward contract then? 4. Following table provides the information on the effective annual spot rates. Maturity 0.5 1 1.5 2 2.5 3 3.5 4 4.55 5.5 6 Spot Rate (%) 3.53 3.44 3.25 3.69 3.78 3.89 3.90 3.98 4.10 4.12 4.20 4.25 What are the six-month forward rates (effective annual) for each period? Use excel to draw the spot rate curve and the forward curve. b. What is the price of a forward contract in which a 3-year 6% coupon bond will be delivered in year 3? Assume coupon is paid semiannually with $3 per payment and assume $100 par value. C. Suppose one year later, all spot rates increase by 10 basis points, what is the market value of the above forward contract then