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Given the spot rates in the following table: Time (yrs) 1 2 3 4 5 Spot Rate r1 12 13 14 r5 Rate (%) 8.540

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Given the spot rates in the following table: Time (yrs) 1 2 3 4 5 Spot Rate r1 12 13 14 r5 Rate (%) 8.540 8.790 9.040 8.790 9.290 a) (4 marks) Compute all the 1 year forward rates Fin.n+1] for n = 0 through 4. b) (4 marks) Compute the 2 year forward rate 3 years forward F13.5]. c) (4 marks) Given a 5 year bond with a face value of $14,000 that pays annual coupons at the rate 8.250% compute the price of the bond

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