Deferred perpetuity is a perpetuity with its first payment starting at some point of time in the future. If the deferred perpetuity starts paying at t = 1, then it is just a regular perpetuity. There are three deferred perpetuities that are available in the market and their prices (for $100 annual payments) are given in the following table:

	first payment starts at
	t=1	t=2	t=3
price	2,264.96	2,167.87	2,074.52

(a) What are the implied 1-year spot rate and forward rate for the second, i.e., r1 and f2? (b) What are the yield-to-maturity of these three deferred perpetuities? Is it better to purchase the deferred perpetuity that offers the highest yield-to-maturity?