Calculate the spot rate using the calculator:

• PV = -94.5795
• FV = 100
• PMT = 0
• N = 3
• CPT I/Y = 1.875 (per 6 months) × 2 = 3.75%

Calculate the forward rate:

• Forward rate = (price 1 year / price 1.5 years) − 1 × 2
• Forward rate = (96.8275 / 94.5795) − 1 × 2
• Forward rate = 4.75%

or

$$(1 + S_{1.5}/2)^3 = (1 + S_1/2)^2 \times (1 + 0.5F_1)^1$$ $$(1 + 0.0375/2)^3 = (1 + 0.0325/2)^2 \times (1 + 0.5F_1)^1$$