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In a market where spot rates apply, the two - year forward rate of interest at time t = 1 is 6 % per annum

In a market where spot rates apply, the two-year forward rate of interest at time t=1 is 6% per annum effective.
The issue price per 100 nominal of a two-year fixed interest bond that pays annual coupons of 4% in arrears and is redeemed at 105% is 95.5.
At the same time, the issue price per 100 nominal of a three-year fixed interest bond that pays 6% in arrears and is redeemed at par is 98.5.
(i) Calculate all possible annual spot-rates.
(ii) Calculate the three-year par yield.

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