Question 4 (17 marks) The following is a list of (annualized) yields to maturity for risk-free zero-coupon bonds. Maturity (Years) 2 3 4 5 Zero Coupon Spot Rates 3.0% 3.5% 4.0% 5.0% 5.5% Calculate one-year holding period returns for buying two-year, three-year, four-year, and five-year zero-coupon bond now and selling them in one year assuming that the yield curve will be the same in one year. That is, fill in the blanks in the table below: Maturity (Years) now Spot Rates in Maturity in one year 0 One-year holding period Return one year 1 3% Spot Rates now 3.0% 3.5% 4.0% 5.0% 5.5% 1 2 3 4 5 ? 2 3 4 NA 3% 3.5% 4.0% 5.0%