Using the information above, compute the par yields to maturity for years 1, 2, 3 and 4. Assume the rates are annual rates.

Maturity (years) Annual Spot Rate 1 4.00% 2 4.25% 3 4.50% 4 4.75% (8 marks) Part A) Using the information above, compute the par yields to maturity for years 1, 2, 3 and 4. Assume the rates are annual rates. Show all your work. (2 marks) Using the above information, calculate the one year forward rate starting in one year (1F1) and the 2 year forward rate starting in year 2 (2F2). Show all your work