The price of a one-year STRIP is 97.56%, the price of a four-year STRIP is 87.48%. Given the following treasury bonds below, calculate the spot rates, forward rates. Put your final answers in the highlighted areas. Show your work in the current worksheet. Assume that bonds pay annual coupons, for simplicity. Hint: Use Bond A and B to replicate the cashflows of a five-year STRIP. Bond Maturity (years) Coupon Price (%) A B 5 5 3 2 3 5 92.89 97.43 105.42 C Price Bond A Bond B Bond C Year 1 2 3 5 Year 2 2 3 5 Year 3 2 3 105 Year 4 2 3 Year 5 102 103 Spot Rate r1= 1 2 r2= Forward Rate f0,1= f1,2= f2,3= f3,4= f4,5= 3 rz= 4 14= 5 r3= The price of a one-year STRIP is 97.56%, the price of a four-year STRIP is 87.48%. Given the following treasury bonds below, calculate the spot rates, forward rates. Put your final answers in the highlighted areas. Show your work in the current worksheet. Assume that bonds pay annual coupons, for simplicity. Hint: Use Bond A and B to replicate the cashflows of a five-year STRIP. Bond Maturity (years) Coupon Price (%) A B 5 5 3 2 3 5 92.89 97.43 105.42 C Price Bond A Bond B Bond C Year 1 2 3 5 Year 2 2 3 5 Year 3 2 3 105 Year 4 2 3 Year 5 102 103 Spot Rate r1= 1 2 r2= Forward Rate f0,1= f1,2= f2,3= f3,4= f4,5= 3 rz= 4 14= 5 r3=