Bob Smith wants to determine the current term structure of interest rates. First interpolate to find the annual par coupon rates for treasuries where needed - you will need to compute 3,4 , 6,7,8,9-year par rates. - Use a bootstrap to compute the zero-coupon term structure of interest rates for 1,2, to 10 years (with annual compounding). Also compute the annual forward rates for each year. - Graph the zero-coupon term structure for treasuries, forward rates on the same chart. - Describe the term structure in words - level, slope and curvature (how slope changes). What does the slope and curvature tell us about the future expected path of interest rates? Bob Smith wants to determine the current term structure of interest rates. First interpolate to find the annual par coupon rates for treasuries where needed - you will need to compute 3,4 , 6,7,8,9-year par rates. - Use a bootstrap to compute the zero-coupon term structure of interest rates for 1,2, to 10 years (with annual compounding). Also compute the annual forward rates for each year. - Graph the zero-coupon term structure for treasuries, forward rates on the same chart. - Describe the term structure in words - level, slope and curvature (how slope changes). What does the slope and curvature tell us about the future expected path of interest rates