Question: please show working Question 2 (5 marks) Using the following Yield to maturity information from the Treasury strip and corporate bond, calculate: [3 marks] (a).

please show working please show working Question 2 (5 marks) Using the following Yield to

Question 2 (5 marks) Using the following Yield to maturity information from the Treasury strip and corporate bond, calculate: [3 marks] (a). the forward rate for the treasury strip at year 1-2 and year 2-3; (b). the forward rate for the corporate bonds at year 1-2 and year 2-3; [2 marks] YTM for 1-year bond YTM for 2-year bond YTM for 3-year bond Treasury strip 6% 7.2% 8% Corporate bonds 7.5% 8.8% 9.6%

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