You have been provided with the following information strips with $100 par values.

a. Compute the forward rates of interest in the space provided in the table below:

MATURITY (YEARS)	SEMI-ANNUAL SPOT RATES OF INTEREST	FORWARD RATES OF INTEREST
0.5	3.25
1.0	3.50
1.5	3.80
2.0	4.25
2.5	4.00
3.0	3.75
3.5	3.50
4.0	3.30

b. Sketch the yield curve.

c. Is the yield curve consistent with segmented market theory? Explain.

d. Suppose your expectations are that exactly one year from today, the six-month spot rate of interest will be 3.25% (semi-annual). You have a 1.5-year planning horizon. What would you do? Explain in details