5 5 7 Exercise 6 3 3 a) Explain the difference between the Daily Treasury rates and the Theoretical Spot Rates obtained with Bootstrapping 1 b) Why are forward rates said to satisfy the No Arbitrage principle? 3 1 c) What economic forces affect the structure of interest rates over time? d) How would a 3-year forward rate be interpreted, 5 years from today when the slope of the interest rate curve is positive