Michael Eng manages institutional client portfolios of US Treasury securities$.$ He expects that spot rates one year from now will be the same as they are today. Eng implements a strategy of rolling down the yield curve in one of the managed portfolios. Current information on rates is shown in Exhibit $1.$ Exhibit $1$ Spot Rate $1-$year Implied Forward Rate r$(1)=0\mathrm{.}75\%$ f$(0,1)=0\mathrm{.}75\%$ r$(2)=1\mathrm{.}20\%$ f$(1,1)=1\mathrm{.}65\%$ r$(3)=1\mathrm{.}45\%$ f$(2,1)=1\mathrm{.}95\%$ r$(4)=1\mathrm{.}65\%$ f$(3,1)=2\mathrm{.}25\%$