QUESTION 13 Suppose that the current one-year zero-coupon rate is 3.5% and that the expected one-year rate next year is 5%. If the current 2-year spot rate is 4.5%, what is the implied term premium for the two-year zero-coupon bond? Use the approximation from class. QUESTION 14 Suppose the price of a 1-year 596-coupon bond is $1,000 and the price of a 2-year 596-coupon bond is $1027.81. Using bootstrapping, what is the two-year zero-coupon spot rate? Each bond has a face value of $1,000 and makes annual coupon payments. QUESTION 13 Suppose that the current one-year zero-coupon rate is 3.5% and that the expected one-year rate next year is 5%. If the current 2-year spot rate is 4.5%, what is the implied term premium for the two-year zero-coupon bond? Use the approximation from class. QUESTION 14 Suppose the price of a 1-year 596-coupon bond is $1,000 and the price of a 2-year 596-coupon bond is $1027.81. Using bootstrapping, what is the two-year zero-coupon spot rate? Each bond has a face value of $1,000 and makes annual coupon payments