= Deferred perpetuity is a perpetuity with its first payment starting at some point of time in the future. If the deferred perpetuity starts paying at t 1, then it is just a regular perpetuity. There are three deferred perpetuities that are available in the market and their prices (for $100 annual payments) are given in the following table: Price First payment starts at t = 2 2,167.87 t = 1 2,264.96 t = 3 2,074.52 r1 (a) What are the implied 1-year spot rate and forward rate for the second year, i.e., and f? (b) What are the yield-to-maturity of these three deferred perpetuities? Is it better to purchase the deferred perpetuity that offers the highest yield-to-maturity?