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Assume that: Forward rates for 6 month and 1 year are r(0

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Assume that: Forward rates for 6 month and 1 year are r(0.5)-7% and r(1)-8%; • Spot rates for 18 months and 2 years are f(1.5) =7.8% and f(2)-8.2% • The price of a zero-coupon bond maturing 2.5 years from now is $81.50 a) (3 points) Find the 1-year spot rate f(1). b) (3 points) Find the 18-month forward rate r(1.5) c) (3 points) Find the price of a...