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1. Given the benchmark annual Par Curve shown below, calculatethe spot and forward rates for each period.Maturity.MaturityPar Rate13%24%35%a. Calculate the spot and forward rates for each period.b. Calculate the 1-year forward rates for each period.c. Use the forward rates calculated above to value a 3-year 1%annual coupon bond from the same issuer. Show the expected value ofthe bond at the end of each year in your calculation
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