Question: 6. Calculate the forward rate between 4 months from now and 7 months from now, based on the zero rates of the previous two problems.
6. Calculate the forward rate between 4 months from now and 7 months from now, based on the zero rates of the previous two problems.
The previous two questions:
4. What is the zero rate implied by a zero coupon bond that has a face value of $1000 that comes due in 4 months and that trades at $992?
5. What is the zero rate implied by a zero coupon bond that has a face value of $1000 that comes due in 7 months and that trades at $983?
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