A three-year treasury note with a 5% coupon priced at 97.50, another two-year treasury note with a 7% coupon priced at 103.78, and the one-year zero coupon treasury note priced at 96.15. Assume all three bonds are annual compounding.

(a)What are the one-, two-, and three-year zero prices?

(b)What are the one-, two-, and three-year spot rates?