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Use the following information to answer parts (a) and (b) below. The par value is $100. All the interest rates are on a BEY basis.

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Use the following information to answer parts (a) and (b) below. The par value is $100. All the interest rates are on a BEY basis. (a) What are the 2.5-year and 3-year spot rates? (5 marks) (b) What are the 1-year forward rate in 2 years and the 2-year forward rate in 1 year? (5 marks) Use the following information to answer parts (a) and (b) below. The par value is $100. All the interest rates are on a BEY basis. (a) What are the 2.5-year and 3-year spot rates? (5 marks) (b) What are the 1-year forward rate in 2 years and the 2-year forward rate in 1 year

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