The current on-the-run yields for the Ramsey Corporation are as follows:

Maturity (years)	Yield to Maturity (%)	Market Value
1	7.2	100
2	7.8	100
3	8.4	100

Assume that all bonds are annual-pay bonds. Each bond is trading at par, so its coupon rate is equal to its yield to maturity.

Using the bootstrapping methodology, complete the following table

Year	Spot Rate (%)	One-Year Forward Rate (%)
1
2
3

Using the spot rates, what would be the value of 3-year 8.5% coupon option-free bond from this issuer?

Using the one-year forward rates, what would be the value of a 3-year 8.5% coupon option-free bond from this issuer?