Actuarial FM question:

A one-year zero-coupon bond with face value $100 is trading at $91.4077; a two-year bond with 10% annual coupons and face value $100 is trading at $102.2373; a three-year bond with 10% annual coupons and face value $100 is trading at $100.2487; and a four-year bond with 10% annual coupons and face value $100 is trading at $105.9705.

(i) Calculate the 1, 2, 3, 4year spot interest rates corresponding to these bond prices.

(ii) Under the spot interest rates found in part (a), the annual effective yield of a four-year, $300 par-value bond with % annual coupons is 8.27%. Find .