Yield curve data provides the following forward or spot rates:

f₀ = 0.03 f₁ = 0.0325 f₂ = 0.03625 f₃ = 0.0375

a. Using the forward rates shown above, find the price of a T-bill with one year to maturity and a par value of $100? Note: Use semi-annual periods and remember that T-Bills have a coupon rate of 0%.

b. If the price of the same T-Bill is $93.804, find Z₂. Note: use semi-annual periods.

c. What should be the value of Z₂? Note: Use this equation to find Z₂ --> (1+Z_n)ⁿ = (1+f₀) ... (1+f_n-1)