1. Which of the following statements is true? I) The spot interest rate is a weighted average of yields to maturity II) Yield to maturity is the weighted average of spot interest rates and estimated forward rates III) The yield to maturity is always higher than the spot rates a. I onlyb. II onlyc. III onlyd. I and III only2. A forward rate prevailing from period three through to period four can be: I) Readily observed in the market place II) Extracted from spot interest rate with 3 and 4 years to maturity III) Extracted from 1 and 2 year spot interest rates a. I onlyb. II onlyc. III onlyd. I and III only3. If the 3-year spot rate is 10.5% and the 2-year spot rate is 10% what is the one-year forward rate of interest two years from now? a. 3.7%b. 9.5%c. 11.5%d. None of the above4. If the 5-year spot rate is 10% and the 4-year spot rate is 9% what is the one-year forward rate of interest four years from now? a. 14.1%b. 9.5%c. 1.0%d. 11.0%