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 $ 968.16 12345 878.39 812.92 749.00 675.46 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 5 (1 + y5) (1 + 73) 3 1 Complete this question by entering your answers in the tabs below. Required A Required B a. Suppose that you buy today one 3-year maturity zero-coupon bond with face value $1,000. How many 5-year ma zeros would you have to sell to make your initial cash flow equal to zero (specifically, what must be the total face val those 5-year zeros)? (Round your answer to 4 decimal places.) c. What is the effective 2-year interest rate on the effective 3-year-ahead forward loan? (Round your answer to 2 de places.) d. Confirm that the effective 2-year forward interest rate equals (1 + f) (1 + f5)1. You therefore can interpret th loan rate as a 2-year forward rate for the last two years. Alternatively, show that the effective 2-year forward rate ec (Round your answer to 2 decimal places.) a. 5-year maturity zeros c. 2-year interest rate d. 2-year loan rate % % Sho 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 blank if there is no effect. Round your answers to 2 decimal places.) Time 0 3 Cash Flow 5