Calculate the two annual forward rates

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The FED is concerned with interest rate levels and the possibility of inflation. Given the following information for January 2012 data, calculate the two annual forward rates using the information provided below.
September 2010: January 2012:

date: 9/29/10 Date: 1/13/12

1 month: 0.12 1 month: 0.02

3 months: 0.16 3 months: 0.03

6 months: 0.20 6 months: 0.06

1 year: 0.27 1 year: 0.10

2 years: 0.44 2 years: 0.24

3 years: 0.67 3 years: 0.34

5 years: 1.28 5 years: 0.80

7 years: 1.91 7 years: 1.32

10 years: 2.52 10 years: 1.89

20 years: 3.38 20 years: 2.59

30 years: 3.69 30 years: 2.91

Reference no: EM132438399

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