Question $35(5$ points$)$

Consider the following zero$-$coupon yields on default$-$free securities:

The forward rate for year $2($the forward rate quoted today for an investment that

begins in one year and matures in two years$)$ is closest to: You have to show

your work for credit $(2$ marks$)$

The forward rate for year $3($the forward rate quoted today for an investment that

begins in two years and matures in three years$)$ is closest to:

You have to

show your work for credit $(2$ marks$)$

The forward rate for year $4($the forward rate quoted today for an investment that

begins in three years and matures in four years$)$ is closest to:

You have to

show your work for credit $(1$ mark$)$