Suppose you observe the following forward rate curve:
Term Forward rate
0y1y 2.00%
1y1y 2.50%
2y1y 3.00%
1) What is the implied 2-year spot rate?
2) What is the no-arbitrage value of a fixed-rate bond with a $100 par value, a 4% coupon rate with annual payments, and a term to maturity of 2 years?