Year	Cash Flow
1	39.50
2	31.65
3	24.28
4	17.38
5	10.98

Year	1	2	3	4	5
1-Year Foward	0.07141	0.15169	0.12829	0.12157

Year	1	2	3	4	5
Spot Curve	3.0%	5.05%	8.32%	9.43%	9.97%

Given the cash flows and the 1-year forward rates, what is the yield curve spread when using the forward rates?

Show all work, thanks! The forward rates aren't in percentage form!

You do not need the year 5 forward rate. You can use the exact formula that I just inputted all the numbers in and I believe you add all those together to come up with a valud for SPD.

Period 1: 1 / (1.03 + SPD)

Period 2: 1 / (1.03 + SPD)(1.07141 + SPD)

Period 3: 1 / (1.03 + SPD)(1.07141+ SPD )(1.15169 + SPD)

Period 4: 1 / (1.03 + SPD)(1.07141 + SPD)(1.15169 + SPD)(1.12829 + SPD)

Period 5: 1 / (1.03 + SPD)(1.07141 + SPD )(1.15169 +SPD )(1.12829 + SPD)(1.12157 + SPD)