. An investor purchases a just issued 30-year, 10.000% semi-annual coupon bond at 104.079 percent of par value and holds it to maturity. The bonds yield to maturity is 9.584%, and assume it is constant through the bonds life. All coupons are reinvested to maturity at the yield to maturity. Show the sources of return below. Total coupon payments: PAR value at maturity: Reinvestment income from coupons: Total value at maturity: Realized rate of return (horizon yield) at maturity:

Calculate the 3y1y implied forward rate (IFR_6,2). A=6, B=8, B-A=2 six-month periods. Assume the three-year spot rate z₆ is 2.9000% and the four-year spot rate z₈ is 2.7650%, assuming semiannual compounding. (Hint: remember to express the interest rates and periods in 6-month terms, not annual terms, for your calculations.)

All prices and interest rates must be expressed to THREE decimal places. You must show your work