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Question one From the table, calculate the 6-moth, 1-year, 1.5-years spot rates using bootstrapping process. Compute the 1-year forward rates, starting from today, 1-year from

Question one

From the table, calculate the 6-moth, 1-year, 1.5-years spot rates using bootstrapping process.

Compute the 1-year forward rates, starting from today, 1-year from now and 2-year from now.

Years to maturity	0.5	1	1.5
Bond price	K100	K100	K100
Coupon rate	3%	4%	5%

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