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Here is a table of zero coupon bond prices: Maturity: 1 year 2 year 3 year Price: 0.99010 0.97066 0.0.94929 a) What are the corresponding

Here is a table of zero coupon bond prices:

Maturity:

1 year

2 year

3 year

Price:

0.99010

0.97066

0.0.94929

a) What are the corresponding spot rates (1yr, 2yr, 3yr)?

b) What is the 1 year rate deferred 1 year F_[1,2]?

c) What is the 1 year rate deferred 2 years F_[2,3].

d) What is the 2 year rate deferred 1 year F_[1,3]?

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