1a. Given the following info on the zero rates (continuous compounding), compute the one-year forward rates (continuous compounding) and par rates (annual compounding)

Maturity (years)	Zero rates	Forward rates	par rates
1	2%
2	3%
3	4%

1b. If the fixed rate of a 12x24 FRA is currently 2% in the market, is there any arbitrage opportunity? If yes, show how it can be done.

2. Given the following info, compute the zero rates (continuous compounding), the one-year forward rates (continuous compounding) and par rates (annual compounding). Coupons, if applicable, are paid once a year.

Maturity (years)	Coupon rate	bond price	Zero rates	Forward rates	par rates
1	0	97%
2	2%	102%
3	3%	103%