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5. Given a term structure of 6.4%,7.0%,7.5%,8.2%, and 8.6% for 1 to 5 years T-bonds, what is the forward rate of interest on a three-year

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5. Given a term structure of 6.4%,7.0%,7.5%,8.2%, and 8.6% for 1 to 5 years T-bonds, what is the forward rate of interest on a three-year security two years from today (i.e., for the third year, or the expected 3-year interest rate for the third year, E(3r3),? (10 points)

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