C. Given the data in the table and the information below, please answer the following parts. Show all working and formulas used. r(1) r(2) r(3) r(4) r(5) r(6) Maturity (T) Spot Rate (%) 0.05 0.28 0.12 0.03 The forward rate for a 3-year loan beginning in 2 years is 0.067%. The forward rate for a 2-year loan starting in 3 years is -0.194%. 1) Please calculate the 3-year spot rate. [2 marks] 2) Please calculate the 2-year spot rate. [2 marks] 3) Misty would like to invest $10,000 today. She is faced with the choice between 2 investments: Option 1: invest $10,000 today for 5 years; Option 2: invest $10,000 today for 1 year and reinvest proceeds for another 4 years at a forward rate of 0.10% Which one is the optimal option to Misty, or she should be indifferent between the choices? [3 marks] C. Given the data in the table and the information below, please answer the following parts. Show all working and formulas used. r(1) r(2) r(3) r(4) r(5) r(6) Maturity (T) Spot Rate (%) 0.05 0.28 0.12 0.03 The forward rate for a 3-year loan beginning in 2 years is 0.067%. The forward rate for a 2-year loan starting in 3 years is -0.194%. 1) Please calculate the 3-year spot rate. [2 marks] 2) Please calculate the 2-year spot rate. [2 marks] 3) Misty would like to invest $10,000 today. She is faced with the choice between 2 investments: Option 1: invest $10,000 today for 5 years; Option 2: invest $10,000 today for 1 year and reinvest proceeds for another 4 years at a forward rate of 0.10% Which one is the optimal option to Misty, or she should be indifferent between the choices? [3 marks]