Question 2 (5 points) From the Treasury strip yield curve, the current required yields on one-, two-year Treasury strips are 4.5% and 5.0%, respectively. The current yield curve indicates that appropriate one-year discount bonds are yielding 6.5%, two-year bonds are yielding 7.5%. a. Calculate the one-year forward rate on the Treasuries and the corporate bond. b. Using the current and forward one-year rates, calculate the marginal probability of repayment on the corporate bond in years 1 and 2 , respectively. c. Calculate the cumulative probability of default on the corporate bond over the next two years