Question: How do I solve this? This question has part a through d and, not so sure how to go about answering. FOUR DEC 1. You

How do I solve this?

This question has part a through d and, not so sure how to go about answering.

FOUR DEC 1. You are given the following benchmark spot rates: (Total 20 points) Maturity Spot rate 2.90% N 3.20% 3.60% 4.20% a. Compute the forward rate between years 1 and 2. (5 points) In b. Compute the forward rate between years 1 and 3. (5 points)What is the zero price today of a five - > "pon bond if the forward price for a one - year zero - C . _upon bond beginning in four years is kill " 20 08 0 . 9461 ( 5 points ) DA d . Calculate the price of a 4 % annual coupon corporate bond with two years remaining to maturity has a Z spread of 200 bps. Assume interest paid annually . ( 5 points )

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