C. Given the data in the table and the information below, please answer the following parts. Show all working and formulas used. Maturity M1) M2 r(3) M4) (5) (6) Spot Rate(%) 0.05 0.28 0.12 0.03 * The forward rate for a 3-year loan beginning in 2 years is 0.067%. The forward rate for a 2-year loan starting in 3 years is -0.194%. 1) Please calculate the 3-year spot rate. 2) Please calculate the 2-year spot rate. [2 marks] [2 marks] 3) Misty would like to invest $10,000 today. She is faced with the choice between 2 investments: Option 1: invest $10,000 today for 5 years; Option 2: invest $10,000 today for 1 year and reinvest proceeds for another 4 years at a forward rate of 0.10% Which one is the optimal option to Misty, or she should be indifferent between the choices? [3 marks]