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Using the following data to answer Question 1 and 2. Note that round to the nearest hundredths. Maturity (Years) STRIPS Price Spot Rate Forward Rate

Using the following data to answer Question 1 and 2. Note that round to the nearest hundredths.

Maturity (Years) STRIPS Price Spot Rate Forward Rate
0.5 98.7654 2.50% 2.50%
1.0 97.0662 3.00% 3.50%
1.5 95.2652 3.26% 3.78%
2.0 93.2775 % %

Find Spot and Forward Rate for year 2

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