Consider a Treasury bond with an 8% coupon rate and 4 years to maturity (annual coupons). You
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a Treasury bond with an 8% coupon rate and 4 years to maturity (annual coupons). You enter into a forward contract to purchase this bond two years from today right after the second coupon is paid. What is the forward price? The prices of zero coupon bonds maturing in one, two, three, and four years (per 1$ face value) are 0.9524, 0.8900, 0.8278, and 0.7629 respectively
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date: