... note that 103 23 corresponds to103 + 23 32 % = 103. 72% and obtain the following equation1,037 .2 =401 +y 2 2+401 +y 2 2 2 +401 +y 2 23+1,0401 +y 2 24This equation ... Securities Exercise 2. 28 The spot rates with semiannual compounding for maturities (in semesters)ranging from 1 to 5 are R 2 (0, 0.5) = 5%,R 2 (0, 1) = 5 .25 %,R 2 (0, 1.5) =5.75%,R 2 (0, 2) = 6 .2% ,R 2 (0, 2. 5) ... correspondingzero-coupon and forward rates.5.005.506.006.500 5 10 15 20 25 30MaturityPar yield (%)Figure 3 .2 US Treasury par yield curve as of 11/03/1999. Fixed- Income Securities 38 Fixed Income Securities Table...