Provide step by step solution to the following questions. Kindly address all questions.

The n-year spot rate of interest s,, is given by the formula: $, = 0.050 - for " = 1, 2 and 3 500 (i) Calculate the implied one-year forward rates applicable at times / = 1 and / = 2. [3] (ii) An investor purchases a 3-year bond that provides coupons of 6% pa payable annually in arrears and is redeemable at par. Show that the fair price for this bond is f104.36 per $100 nominal. [1] (iii) Calculate the investor's gross redemption yield. [3] (iv) Calculate the par yield of the bond. [3] [Total 10]The following table is extracted from the 1970-72 investigation into the mortality of occupational groups in England and Wales: Standard Mortality Ratio (ages 15-64, both sexes) Electrical engineers (so described) 317 Publicans, innkeepers 155 Physiotherapists 55 Electrical engineers (requiring training of university standard) 42 (i) Suggest possible explanations for each of the statistics above. [8] (ii) What factors, other than occupation, will influence the mortality differentials? [6] [Total 14]