a. Calculate the missing spot rates.

b. What is the 6-month forward rate starting in the third year?

please show the steps

4. You observe the yields of the Treasury securities below (all yield are shown on a bond-equivalent basis, twice of the semiannual bond yields) Yield to Maturity/ Coupon Rate (90 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 Year Spot Rate 0 5.25 5.50 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.76