I. Determine the par yield rates (yields to maturity on par bonds) and forward rates (the ones with ? below) based on the spot curve given below. Make sure that you show your work, not just the answers. Par yield rates Maturity(yr) Spot Rates (%) 1 2 3 4 10 9 8 7 Par Rates(%) ? ? ? ? Forward Rates Maturity (yr) 1 1 ? 2 ? 3 ? Year Forward 2 ? ? N/A 3 ? N/A N/A (Note) Regarding terminology, for example, the 1 year maturity forward rate, 1 year forward, is the 1 year forward rate, one year from now (e.g., fm,nt or f(m,n,t) with m=1 and n=2) and the 2 year maturity forward rate, 1 year forward, is the two year forward rate, one year from now (e.g., fm.nt or f(m,n.t) with m=1 and n=3).