Use the spot rates below for questions 1 and 2. Assume for any swap that the variable rate of the swap is reset annually to the beginning of year one-year spot rate and payments settle annually at the end of the year.

Time	Spot Rate
1	2.00%
2	3.00%
3	3.50%
4	4.00%
5	4.50%

1. What is the value of f2, the one-year forward rate two years from now?

2. Calculate the fixed interest rate of an interest rate swap with a five-year term