You are given the following spot interest rates:
t | t-year spot rate
0.5 | 4.12%
1. | 4.38%
1.5 | 4.50%
2 | 4.60%
2.5 | 4.80%
3 | 4.50%
3.5 | 4.30%
4. | 4.35%
The rates are convertible semi-annually. For example,
a(0.5) = 1 + 0.0412/2 , a(1) = (1 + 0.0438/2)^2.
Calculate the k-year deferred 1-year forward rates for k = 1, 2, 3 and also the 1.5-year and 2.5-year par yields. All rates are convertible on a semi-annual basis, and the par yields are calculated assuming bonds pay semi-annual coupon.