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The current price of a 1-year $1000 zero-coupon bond is $943.40. Suppose the one-year forward rate in year 1 is f = 6.8% and

The current price of a 1-year $1000 zero-coupon bond is $943.40. Suppose the one-year forward rate in year 1 is f = 6.8% and the one-year forward rate in year 2 is f = 7.5%. Compute the price of a 2-year $1000 zero-coupon bond and a 3-year $1000 zero-coupon bond using these forward rates and the implied spot rate from the 1-year bond.

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