Question 2 a) What is a spot rate yield curve? Sketch a typical sport rate curve and explain the main reasons put forward to explain its slope. (10 marks) b) Given the following table, find the spot rates for 6 months, 1 year, 1.5 year and 2 year periods: Explain your workings. (8 marks) c) Use the spot rate curve from b) to price a 2-year 5% semi-annual coupon bond. Would you buy that bond if its market price is 95? (4 marks) d) Why don't we use forward rates to price a bond