Question: Basic Review Problems Problems 1 . and 2 . use rates from the following yield curve table: A 3 - year annual - coupon 1

Basic Review Problems
Problems 1. and 2. use rates from the following yield curve table:
A 3-year annual-coupon 1,000 par value bond has a coupon rate of 4%. Use
the yield curve above to find the bond's price P, and then use that price to
find its yield to maturity.
Calculate the 1-year and 2-year forward rates.
 Basic Review Problems Problems 1. and 2. use rates from the

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