3. [8] Given the term structure in for n = 1,2,...,12, in the table below, (a) Compute the corresponding forward and par yields (b) Plot the term structure as in Excel Chapter 7 Portfolio, Table 7.2 tab. 7 1 2 3 4 5 6 3.5% 3.8% 4.1% 4.4% 4.7% 5.0% 4.596 4.3% 4.1% 3.9% 3.8% 3.5% 8 9 10 11 12 0.26% 3.63% ANS: At t = 12, 12 = 3.5%, i 12 = 0.26%, ip = 3.63%. Excel Solution Preferred 3. [8] Given the term structure in for n = 1,2,...,12, in the table below, (a) Compute the corresponding forward and par yields (b) Plot the term structure as in Excel Chapter 7 Portfolio, Table 7.2 tab. 7 1 2 3 4 5 6 3.5% 3.8% 4.1% 4.4% 4.7% 5.0% 4.596 4.3% 4.1% 3.9% 3.8% 3.5% 8 9 10 11 12 0.26% 3.63% ANS: At t = 12, 12 = 3.5%, i 12 = 0.26%, ip = 3.63%. Excel Solution Preferred