You are presented with the following spot rates and successive one-year forward rates; however, some of the rates are missing. Assume that all rates are expressed as EARs (periodicity = 1), so your answers should be expressed similarly.

Tenor Spot Rate Forward Rate^*

1 Year 6.50% 6.50%

2 Years 6.00% 5.50%

3 Years 5.50% 4.51%

4 Years 3.00%

5 Years 4.40% 2.54%

6 Years 4.00%

* The forward rates are all for one year, from the end of the previous year to the end of the current year.

a. What is the 4-year spot rate?

b. What is the one-year forward rate for the 6^th year (5y1y or IFR_5,1)?

c. What is the 3-year forward rate beginning 3 years in the future (3y3y or IFR_3,3) ?

d. What is the coupon rate (and YTM) on a 3-year bond that is priced at par value?