perfect market with no arbitrage the following instruments are traded: (a) a contract 50 euros in 2 years and 50 euros in three years, priced 94 euros; (b) a zero coupon paying 100 euros in 1 year, quoted 99 euros; (c) a zero coupon bond paying 100 in 2 priced 96 euros. Determine the spot interest rate term structure (annual basis) i(0, s) ne forward one i(0, s 1,8), for s = 1,2. 3 years. perfect market with no arbitrage the following instruments are traded: (a) a contract 50 euros in 2 years and 50 euros in three years, priced 94 euros; (b) a zero coupon paying 100 euros in 1 year, quoted 99 euros; (c) a zero coupon bond paying 100 in 2 priced 96 euros. Determine the spot interest rate term structure (annual basis) i(0, s) ne forward one i(0, s 1,8), for s = 1,2. 3 years