Exercise 3.11 At date t = 0, we observe the following zero-coupon rates in the market: Maturity Zero-coupon rate (%) 1 Year 2 Years 3 Years 4 Years 5 Years 5.00 6.00 6.50 6.80 7.00 1. What are the 1-year maturity forward rates implied by the current term structure? 2. Over a long period we observe the mean spreads between 1-year maturity for- ward rates and 1-year maturity realized rates in the future. We find the following liquidity premiums: L2 = 0.1% L3 = 0.175% L4 = 0.225% L5 0.250% . Taking into account these liquidity premiums, what are the 1-year maturity future rates expected by the market