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Suppose that the accumulation function a(t) of an investment at time t (in years) is given by a(t) = 0.03t^2 + 0.4t + 2. (a)

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Suppose that the accumulation function a(t) of an investment at time t (in years) is given by a(t) = 0.03t^2 + 0.4t + 2. (a) Compute the spot rates of interest for investments of 2, 3 and 4 years. (b) Derive the accumulation function for payments due at time 3, assuming the payments earn the forward rates of interest

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