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Compute the forward rates, prices of zero coupon bonds of corresponding maturities with face value $1000, and finally the par yields on the bonds, assuming

  1. Compute the forward rates, prices of zero coupon bonds of corresponding maturities with face value $1000, and finally the par yields on the bonds, assuming coupons are paid annually.
Maturity Spot Rate
1 year 3.50%
2 years 4.50%
3 years 5.10%
4 years 5.70%
5 years 6.10%

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