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The following table depicts current market conditions (assume annual compounding ) the question is related to debt and money marking, but it is a part

The following table depicts current market conditions (assume annual compounding)the question is related to debt and money marking, but it is a part of finance. there are abcd, 4 sub questions. please show the intermediate steps in details. thx so much!

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\#1. The following table depicts current market conditions (assume annual compounding): (a) Calculate implied 2-year forward rate. 1 (b) According to your analysis on the market condition, propose two strategies using onlv zero coupon bonds in order to take advantage of changes of the yield curve. (c) Assume that the yield to maturity of a zero coupon bond is equal to the current spot zero rates in corresponding years to maturity. Calculate the price and the duration of bonds which you will use for the strategies. 2 (d) Evaluate your strategy when we expect that 2-year forward rate in 3 years increases by 1% in a year. Assume that our investment horizon is 1 year. (In this case, the 3 year spot rate is still 2.40%.)

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