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Use the following information. All bonds are issued by US Treasury and will pay coupons annually. Help find spot rates for time to maturity 3,4

Use the following information. All bonds are issued by US Treasury and will pay coupons annually. Help find spot rates for time to maturity 3,4 and 5?

Bond A B C D E
Issuer Treasury Treasury Treasury Treasury Treasury
Face Value 100 100 100 100 100
Coupon Rate 3.0% 3.0% 3.0% 3.0% 3.0%
Price 100
Maturity 1 2 3 4 5

The sequence of spot rates and forward rates are shown below,

Time to Maturity Spot (0Rn) Forward (n-1Fn)
1 3.0000% 3.000%
2 2.9000% 2.800%
3 2.700%
4 2.600%
5 2.500%

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