Let ft denote the one year effective foward

rate of interest over the year from time to

$t+1.$ let it be the $t$ year spot rate

over the pEriod $0-t.$ The annual effective grass

redemption yeild for in $n-$year bond which pays

coupons of $5\%$ annual in arreas is given as

in $=0\mathrm{.}07+0\mathrm{.}00$n$.$ for $n=1,2,3.$ each bond is

redeemed at par.and is exactly one year jrom the

next coupon payment. Assuming no arbitrage calculate

$i_{0,}{i}_1,i_2,i_3.$ and $f_0,f_1,f_2.$ to $3$ Decimal places