Suppose a one year spot rate and two year spot rate are both 3%.

a) What is the price of a two year zero coupon bond?

b) What is the price of a one year zero coupon bond today?

c) What do I expect the price of a one year zero coupon bond to be, one year from now?

Repeat above except now the one year spot rate is 3% and the 2 year spot rate is 4%.

Repeat above except now the one year spot rate is 3% and the 2 year spot rate is 2%.

*No missing Information*