Spot Interest Rates The price of a one-year STRIP is 97.56%, the price of a four-year STRIP is 87.48%. Given the following treasury bonds below. calculate the spot rates, forward rates. Put your final answers in the highlighted areas. Show your work in the current worksheet. Assume that bonds pay annual coupons, for simplicity. Hint: Use Bond A and B to replicate the cashflows of a five-year STRIP Bond Maturity (years) Coupon A Price 92.89 97,43 105.42 3 Price Year 2 Bond A Bond B Bond C Year 1 2 3 5 2 3 Year 3 2 3 105 Year 4 2 3 Year 5 102 103 Spot Ratc Forward Rate 10,1 11,2 12,3- 13,4 14,5- N Spot Interest Rates The price of a one-year STRIP is 97.56%, the price of a four-year STRIP is 87.48%. Given the following treasury bonds below. calculate the spot rates, forward rates. Put your final answers in the highlighted areas. Show your work in the current worksheet. Assume that bonds pay annual coupons, for simplicity. Hint: Use Bond A and B to replicate the cashflows of a five-year STRIP Bond Maturity (years) Coupon A Price 92.89 97,43 105.42 3 Price Year 2 Bond A Bond B Bond C Year 1 2 3 5 2 3 Year 3 2 3 105 Year 4 2 3 Year 5 102 103 Spot Ratc Forward Rate 10,1 11,2 12,3- 13,4 14,5- N