Given the following sequence of spot rates derived from government bonds. Time-to-Maturity Spot Rates 1 year 9.7% 2 years 9.2% w 3 years 8.3% 4 years 7.9% 5 years 6% 1) Calculate the forward rate f(2, 1). (Keep four decimal places in all percents or six decimal places in decimals, i.e X.XXXX% in your calculations) Answer: 2) Calculate the forward rate f(2.3). (Keep four decimal places in all percents or six decimal places in decimals, i.e. X.XXXX% in your calculations) Answer: 3) Calculate the forward rate f(1.4). (Keep four decimal places in all percents or six decimal places in decimals, i.e. X.XXXX% in your calculations) Answer: 4) If the 8-year government bond spot rate is 4.8%, what is the forward rate we should use for the forward contract on a 5-year zero-coupon government bond that will be issued in 3 years? (Keep four decimal places in all percents or six decimal places in decimals, i.e. X.XXXX% in your calculations) Answer: 5) Use the above information to value a 5-year, $1000 par value, 6.2% annual coupon-paying bond. Answer: 6) Given the above information, the forward curve is the current spot curve