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4. The term structure of effective annual yield rates for zero coupon bonds is given as follows: Time to Maturity Spot rate 3% 4%

4. The term structure of effective annual yield rates for zero coupon bonds is given as follows: Time to Maturity Spot rate 1(i) Find the three year forward effective annual rate of interest f13,4]. (ii) Find the price of a 3 year bond with face amou  

4. The term structure of effective annual yield rates for zero coupon bonds is given as follows: Time to Maturity Spot rate 3% 4% 6% 7% 1-Year 2- Year 3- Year 4- Year (i) Find the three year forward effective annual rate of interest fs,41- (ii) Find the price of a 3-year bond with face amount 100, and annual coupons 8%. The first coupon will be paid in one year.

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