Answer the following scenarios: (1) Two sales-people in analytical systems are making a presentation to you about the merits of their respective systems. One sales-person states that in valuing bonds the system first constructs the theoretical spot rates and then discounts cash flows using these rates. The other sales-person interjects that his firm takes a different approach. Rather than using spot rates, forward rates are used to value the cash flows and he believes this is a better approach to valuing bonds compared to using spot rates. How would you respond to the second sales- person's comment about his firm's approach? (150 words) [6 marks)