Question: 3. Suppose that the forward rate function is r(f) = 0.0154 0.005, > 0. (a) (5pts) What is the two-year continuously compounded spot rate? (b)

3. Suppose that the forward rate function is r(f) = 0.0154 0.005, > 0. (a) (5pts) What is the two-year continuously compounded spot rate? (b) (5pts) What is the price of a two-year coupon bond with a face value of (PAR) $3. 000 and two annual coupon payments of $150 each

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