Given the following bonds and forward rates:

| Maturity | YTM | Coupon | Price |

|----------|-------|--------|----------|

| 1 year | 4.5% | 0% | 95.694 |

| 2 years | 7% | 0% | 87.344 |

| 3 years | 9% | 0% | 77.218 |

• 1-year forward rate one year from today = 9.56%

• 1-year forward rate two years from today = 10.77%

This prediction is for key point forecasting; the test questions are for review reference only. Internal use materials — strictly prohibited from dissemination, otherwise legal liability will be pursued.