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Bond A is a one-year zero-coupon bond with $1,000 face value and a current price of $909.09. Bond B is a two-year zero-coupon bond with

image text in transcribed Bond A is a one-year zero-coupon bond with $1,000 face value and a current price of $909.09. Bond B is a two-year zero-coupon bond with $1,000 face value and a current price of $907.03. Q14 (4 pts) What are the one-year and two-year spot rates? A. R1=10.00%;R2=0.00% B. R1=0.00%;R2=10.00% C. R1=10.00%;R2=5.00% D. R1=5.00%;R2=5.00% E. R1=5.00%;R2=0.00% Q15 (4 pts) What is the forward rate starting one year from now, lasting for one year? A. 1f1=0.00% B. f1=0.23% C. 1f1=4.92% D. 1f1=5.00% E. 1f1=10.00%

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