The government has just issued three bonds with terms to redemption of exactly one, two and three years respectively. Each bond is redeemed at par and pays coupons of 8% annually in arrear. The annual effective gross redemption yields from the one, two and three year bonds are 4%, 3% and 3% respectively. Calculate the one-year, two-year and three-year spot rates of interest at the date of issue. [6]