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Three bonds are priced at market yields below. All coupons are annual pay. 1-year bond with a zero coupon and a market yield of 1.80%

Three bonds are priced at market yields below. All coupons are annual pay.

1-year bond with a zero coupon and a market yield of 1.80%

2-year bond with a 4.00% coupon and a market yield of 2.50%

3-year bond with a 5.00% coupon and a market yield of 3.00%

Find the implied 2 and 3 year spot rate (in percentage points).

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