Question: 5: In the table below are given the current prices for zero-coupon bonds with different maturities. The bonds are identical in every respect except for

5: In the table below are given the current prices for zero-coupon bonds with different maturities. The bonds are identical in every respect except for the time to maturity. All of the bonds will be redeemed at their par value of 100 upon redemption. Years to maturity Spot price 96.34 92.10 E87.38 E82.58 4 i. What are the percentages yields to maturity (YTMs) for the different bonds (to the ii. What is the forward rate for a one-year investment starting two years from iii. What is the forward rate for a three-year investment starting one year from nearest one decimal place)? today Gf)? today (f)

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