Spot rates between years 1 and 3: %11.41, %4.66, %6.28, %8.11 and % 7.18

Spot rates between years 3 and 4: %7.18, %9.62, %11.18

2. (30 pts) Using the spot rates you calculated in question 1: a) Compute the forward rate between years 1 and 3. b) Compute the forward rate between years 3 and 4. c) Suppose one of your clients offers to commit to borrowing money from you between years 3 and year 4 at a rate of 13%. Is there any way you can profit from this? Is this strategy an arbitrage? 2. (30 pts) Using the spot rates you calculated in question 1: a) Compute the forward rate between years 1 and 3. b) Compute the forward rate between years 3 and 4. c) Suppose one of your clients offers to commit to borrowing money from you between years 3 and year 4 at a rate of 13%. Is there any way you can profit from this? Is this strategy an arbitrage