Given the following information:

1-year zero-coupon Corporate yield: 12%

2-year zero-coupon Corporate yield: 15%

1-year zero-coupon Treasury bonds yield: 7%

2-year zero-coupon Treasury bonds yield: 10%

Assume periodicity of 1 (i.e. annual compounding) and also assume that the recovery rate expected by bondholders is zero.

What is the forward rate (f _1,2) between year 1 and year 2 for the corporate bonds?

What is the forward rate (f _1,2) between year 1 and year 2 for the treasury bonds?

What is this firms marginal probability of default in the second year?

What is this firms 2-year cumulative probability of default?

Enter the result in percentage points (For example, if you find 10.00% or 0.1, write 10 as the answer), round your answer to 2 decimal points