Exercise 4.5 Suppose that the current time is 0 and that the current term structure of the default-free discount bonds is given by

Obtain

(a) the yields Y (0, 2) and Y (0, 5),

(b) the forward yield f(0, 1, 2), (c)
the LIBOR rate L(0, 0.5) as the semiannual interest rate, and

(d) the forward price of v(0, 10) maturing at 2 years later.

T 0.5 1.0 2.0 5.0 10.0 v(0, 7) 0.9875 0.9875 0.9720 0.9447 0.8975 0.7885