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Use this information for the following 7 questions. The following is a list of prices for zero-coupon bonds of various maturities: Maturity (years) Price of
Use this information for the following 7 questions. The following is a list of prices for zero-coupon bonds of various maturities: Maturity (years) Price of Bond ($) Spot rates Forward rates 1 947.87 2 873.44 3 793.83 4 735.03 a) What is the spot rate s? (1pt, Answer format: 14.20, in percent, but include no % symbol, round to 2 digits.) b) What is the spot rate S3 c) What is the forward rate f12? d) What is the forward rate f3,4? e) What is the price of a 4-year maturity bond with a 9% coupon rate paid annually? f) What will be the price of the bond in the previous question one year from now, if the forward rates stay the same? g) What will be the holding period return over year one, if the forward rates stay the same? (1pt, Answer format: 14.20, in percent, but
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