The prices of zero-coupon bonds with various maturities are given in the following table. Suppose that you want to construct a 2-year maturity forward loan commencing in 3 years. The face value of each bond is $1,000. Maturity (Years) Price 1 $ 925.93 2 853.39 3 4 5 782.92 715.00 650.00 a. Suppose that you buy today one 3-year maturity zero-coupon bond with face value $1,000. How many 5-year maturity zeros would you have to sell to make your initial cash flow equal to zero (specifically, what must be the total face value of those 5-year zeros)? b. What are the cash flows on this strategy in each year? c. What is the effective 2-year interest rate on the effective 3-year-ahead forward loan? d. Confirm that the effective 2-year forward interest rate equals (1 + 4) (1+ 5)- 1. You therefore can interpret the 2-year loan rate as a 2-year forward rate for the last two years. Alternatively, show that the effective 2-year forward rate equals (1 + y5)5 (1 + 73) 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B b. What are the cash flows on this strategy in each year? (Negative value should be indicated by a minus sign. Leave cell blank if there is no effect. Round your answers to 2 decimal places.) Time Cash Flow 0 $ 0 3 $ 1,000.00 5 $ 1,204.49 x < Required A Required B