Question: The table below provides market prices for zero - coupon government bonds with different maturities. Assume annual compounding. ( a ) Compute one - ,

The table below provides market prices for zero-coupon government bonds with different maturities. Assume annual compounding. (a) Compute one-, two-, three-, and four- year spot rates. (b) Compute one-, two-, three-, and four- year forward rates. (c) Construct a plot of the yield curve. (d) What is your interpretation of the shape of the yield curve?
The table below provides market prices for zero -

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