The following are spot rates for zero coupon bonds, face value $100,000.

Maturity	1 year	2 years	3 years	4 years	5 years
Spot rate (%)	7.0	6.5	6.0	5.5	5.0

A bond trader is planning to sell his 4-year zero-coupon bond in 2 years time, at which time it will have 2 years to maturity, i.e., it will be a 2-year bond. The bond trader believes in the unbiased expectations theory of the term structure of interest rates. What price does the trader expect to receive for his bond?

(i) Calculate the appropriate forward rate. Show your working (1 Mark)

(ii) Use the forward rate calculated in (i) to calculate the expected bond price. Show your working (1 Mark)