The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Maturity (Years) Price of Bond YTM 1 943.4 % 2 898.47 % 3 847.62 % 4 792.16 %

b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to the nearest whole percent.)

Maturity (years) Price of Bond 1 943.4 2 898.47 3 847.62 4 792.16 Years Price of Bond Forward Rate 2 898.47 % 3 847.62 % 4 792.16 %