Term Structure: Consider the following Treasury yields (all yields are shown on a bond equivalent basis)

Period	Year	Yield to Maturity (%)	Spot Rate(%)
1	0.5	4.00
2	1.0	4.60
3	1.5	5.20
4	2.0	6.00

All the securities maturing from 1.5 years on are selling at par. The .5 and 1.0-year securities are zero-coupon instruments.

I.) Fill the missing spot rates in the table

ii.) What should be the price of a two years, 8% coupon Treasury security with $100 par value?

iii.) The implied forward rate from 6 months to one year is closest to:

A.) 4.80% B.)4.30% C.)5.20%

iv.) Suppose that you have a possibility to enter into a forward contract to pay (borrow at) 5.00% rate from 6 months to one year, will you enter into that contract? And why?