Commercial Banking. You are a corporate account officer with TLTF ("Too Large To 100 Fail") Bank. One of your major clients just sold a piece of customized machinery to be delivered in one year's time. The company's CFO inquires about the possibilities of investing USD 10 m in a year from now for one year. (a) What kind of investment opportunity (contract) is m? 3 (b) Currently, 1-year and 2-year spot rates are 6.50% and 7.25%, respectively. They get a return for the preceding investment. Since the customer is old af (c) What alternative investments could he use? (d) the forward curve. Why or why not is it a good predictor of future interest rates?