The spot rates of interest for five U.S. Treasury Securities are shown in the following exhibit. Assume all securities pay interest annually. Spot Rates of Interest Term to Maturity Spot Rate of...

The spot rates of interest for five U.S. Treasury Securities are shown in the following exhibit. Assume all securities pay interest annually.

a. Compute the 2-year implied forward rate for a deferred loan beginning in 3 years.

b. Compute the price of a 5-year annual-pay Treasury security with a coupon rate of 9% by using the information in the exhibit.