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Given the bond yields below, calculate the bond yields, spot rates and 1-year forward rates 1 year and 2 year from now (1f1 and 2f1).

Given the bond yields below, calculate the bond yields, spot rates and 1-year forward rates 1 year and 2 year from now (1f1 and 2f1). All bonds have a face value of $100. Assume that coupon payments are made annually. Round to 1/1000.

Maturity Coupon Rate Bond Price Yield Spot Rate Forward (1) Forward(2) 1 year 2 year 3 year 4 year 0 2 3 4 $99 $100 $100 $100

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