Question: Only need problem 6.3. Previous problems just included for reference Problem 6.1 We are given the following yield curve: year spot rate 5.0 % 4.5

Only need problem 6.3. Previous problems just included for reference

Problem 6.1 We are given the following yield curve: year spot rate 5.0 % 4.5 % 3 | 4.0 % 4 | 4.0 % 4.0 % Consider a three year 1,000 par bond with annual interest payments and a coupon rate of 4%. Use the above yield curve to find the prive P and the yield to maturity Hint: You may use a financial calculator or a computer to compute the yield to maturity Problem 6.2 We are given the same yield curve as in Problem 6.1. Find today's implied one-year forward rate for an investment period of one year (to be made in one year from today) Problem 6.3 Annual yield rates to maturity of zero coupon bonds are currently 8.5% for a one- 9.5% for two year and 10.5% for a three-year maturity. Calculate the implied one-year forward rate as in Problem 6.2 year

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