Assume the following Treasury spot rates and compute the following forward rates on an annualized bond equivalent yield basis:

a$)$ the $6-$month forward rate three years from now b$)$ the $2-$year forward rate one year from now

$214\mathrm{.}7\%$

$31\mathrm{.}54\mathrm{.}9\%$

$425\mathrm{.}6\%$

Years to Maturity

Annual Yield to Maturity $($BEY$)$

$1\mathrm{.}505\mathrm{.}00\%$

Period Years to Maturity Spot Rate

$10\mathrm{.}54\mathrm{.}4\%$

$52\mathrm{.}55\mathrm{.}8\%$

$636\mathrm{.}2\%$

$73\mathrm{.}56\mathrm{.}8\%$

$847\mathrm{.}4\%$