The following is a list of prices for zero-coupon bonds of various maturities.
Maturity (years) Price of Bond
1 $943.40
2 $898.47
3 $847.62
4 $792.16
a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years.
b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year"