Question 2 (8 marks) A T-bill quote sheet has 98-day T-bill (Face value: $10,000) quotes with a 3.86% bid and a 3.83% ask rates. (a) Calculate purchase price of the bill. (2 marks) (b) Calculate the corresponding bond equivalent yield. (2 marks) (c) Prices of zero-coupon bonds reveal the following pattern of interest rates: Years from now 0 1-year interest rate 5.2% 7.3% 8 .6% 2 Calculate: i) 2-year interest rate on today and 3-year interest rate on today. ii) 1-year forward rate 3 years from now if 4-year interest rate on today is 7.8%. (4 marks)