You are given the following information. All bonds are from the same issuer (same credit risk) Bond Coupon Rate Maturity Price (5) 6% 1 1036.17 IB 15% 2 1041.49 C 6% 3 1074.21 All coupon payments are annual and face values are $1000. Answer the following and express rates as a %, to 2 decimal places a) Determine the 1-, 2- and 3-year spot rates from the given prices (Use the Bootstrapping method). 1-Year Spot rate is 2-Year Spot rate is 3-Year Spot rate is b) Compute the implied annual forward rate from year one to year two, i.e., f2 --> c) Compute the implied annual forward rate from year two to year three, i.e., f3 -->