Consider the following spot rate curve:

• 6-month spot rate: 3%.
• 12-month spot rate: 5%.
• 18-month spot rate: 8%.
• 24-month spot rate: 10%.

What is the implied forward rate for a 12-month zero coupon bond issued one year from today? Equivalently, the question asks for f₂², where 1 time period consists of 6 months. Assume semi-annual compounding.

Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. An 7% coupon $100 par bond pays an semi-annual coupon and will mature in 1.5 years. What should be the YTM on the bond? Assume semi-annual interest compounding for this question.

Maturity (periods)	Price of $1,000 par bond
1	952.2
2	855
3	760.5