1. Use the par yield curve below to price the cash flows given in the left-most column. Assume that all bonds, except for the first one, are coupon bonds. Quote the price to the closest penny.

Period	Maturity (yrs)	Yield (BEY %)	CF ($)
1	0.5	0.5	10
2	1	2	20
3	1.5	3	100
4	2	4	-30
5	2.5	5	50
6	3	6	50
7	3.5	7	100
8	4	7.5	200
9	4.5	8	0
10	5	8.4	1,000

1. [40 pts] Give and describe the no-arbitrage table to price a 2-year zero-coupon loan two years from now, accounting for the actions of all parties. For concreteness sake, use the par yield curve in question 1. What is the lockable, annualized rate for such a loan?