Given 1-year par rate = 3.2% 2-year par rate = 5.2% 3-year par rate = 6.1% 4-year par rate = 7.5% Suppose the bond price and par values are both K1000, Compute the 1-year, 2-year, 3-year and 4-year spot rates using bootstrapping process.

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Q: Given 1-year par rate = 3.2% 2-year par rate = 5.2% 3-year par rate = 6.1% 4-year par rate = 7.5%…

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