UST strip bonds have the following yields

Yields to maturity Yield

1 2.3%

2 3.0%

3 3.9%

4 4.1%

a. What are the implied forward rates years 1-3?

b. If the yield curve does not change, what will be the 1-year HPR for each security?

c. If you plan on investing for 4 years and you believe that the yield curve will not change, what strategy maximizes your returns?