Questions are showing below. The last two questions are related to forward rates. Thank you.

Consider three different US Treasury securities with maturities T = 1, 2 and 3 years, all with principal of $100. As usual convention, today is time t=0. > One year Treasury bill trades at price P1 = $97. > Two year Treasury note which pays 4% coupon annually, trades at P2 = $100.60 > Three year Treasury note which pays 5% coupon 5% annually, trades at P3 = $101.90 (a) Compute YTM (yield-to-maturity, y) of all three bonds. (b) Compute zero-coupon bond prices and zero-coupon yields (i.e. zero-rates) of all three maturities, T = 1, 2 and 3 years. (0) Compute one period forward rates at times T=1, 2 and 3. Assume that the price of 4 year zero coupon bond price is $0.82. ((1) You are thinking of starting a business on year two (T=2) when you might need to borrow money. You believe interest rates are low today. What interest rate can you lock in today for borrowing on year two, assuming you want to borrow only for a period of 2 years