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The following is a list of prices for zero-coupon bonds of various maturities. Maturities (years) Price of Bond ($) 1 957.20 2 931.35 3 920.50

The following is a list of prices for zero-coupon bonds of various maturities.

Maturities (years) Price of Bond ($)
1 957.20
2 931.35
3 920.50
4 725.72

(a) Calculate the forward rates for one-year bonds to be delivered in one, two, and three years. (b) Calculate the forward rate for a two year bond to be delivered in one year.

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