Question: need both parts (a) and (b) please with work shown. Thanks for your help! PART B: CALCULATION (KEEP FOUR DECIMAL PLACES FOR ALL YOUR ANSWERS)

need both parts (a) and (b) please with work shown. Thanks

need both parts (a) and (b) please with work shown. Thanks for your help!

PART B: CALCULATION (KEEP FOUR DECIMAL PLACES FOR ALL YOUR ANSWERS) I. You are given the following benchmark spot rates: (Total 20 of 55 points) Maturity Spot rate 2.90% 3.20% 3.60% 4.20% 4 (12) a. Compute the forward rate between years 1 and 2.(5 points) ,036)2 -1 A 14,03 % l 4. 029 b. Compute the forward rate between years I and 3. (5 points) +. 042 1: 17.28 29 % ( 14.034) Page 5 of 10

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