... flow05/15/02 17, 500 11/15/03 17, 500 05/15/05 17, 500 05/15/06 17, 50011/15/02 17, 500 05/15/04 17, 500 11/15/05 17, 500 11/15/06 1,0 17, 50005/15/03 17, 500 11/15/04 17, 50060 Fixed Income Securities Exercise ... 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 ... and Using Models for Exotic Interest-Rate Options (second edition) Riccardo Rebonato54 Fixed Income Securities There is a particular forward rate that is called the instantaneous forward rate....