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Suppose you are given the following features of Bonds D, E, and F. (Note that all three bonds have a maturity of 1 year,

Suppose you are given the following features of Bonds D, E, and F. (Note that all three bonds have a maturity of 1 year, which complicates the equations but not the linear algebra in Excel.) Bond D Bond E Bond F Price $962.66 $972.05 ? Yield ? ? ? Coupon rate 5% 6% 7% Face $1,000 $1,000 $1,000 2a. What is the arbitrage-free six-month spot rate? (10 points) 2b. What is the arbitrage-free one-year spot rate? (10 points) 2c. What is the arbitrage-free price of Bond F? (10 points) Maturity 1 1 1

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