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Converting Par Rates to Spot/Zero Rates to Forward Rates: Convert the following par rates to spot/zero...

Converting Par Rates to Spot/Zero Rates to Forward Rates: Convert the following par rates to spot/zero and (into 1y) forward rates. Plot the graph of rates vs time.

Time to maturity t Par rate pt

1 4%

2 5%

3 6%

4 7%

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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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