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Complete the working out show all working do not use excel write all calculations manually on paper The 1-year, 2-year, and 3-year spot rates for

Complete the working out show all working
do not use excel write all calculations manually on paper
image text in transcribed
image text in transcribed
The 1-year, 2-year, and 3-year spot rates for government bonds in Jamaica are 5.00, 5.50, and 6.50 respectively with corporate bonds having a spot rate of 6.00, 6.50, and 7.50 respectively. a. Calculate the implied forward rates for government bonds. (marks b. Calculate the implied forward rates for corporate bonds (2marks c. Suppose the spot rates for all corporate bonds increase by 1 percent, calculate the new implied forward rates for corporate bonds (4 marks (13) (os) - ( |. 055) * 111729 - , . . 5 - 33 | 0.0 -1- la CILE) (1.06) = (1.065) ( ( ts 01 , .| 0.04 = 6080 tee

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