Question: c. What is the forward rate implied by the above zero yield curve for the 2year zero effective annual yield twpyears from now {i.e_, the


c. What is the forward rate implied by the above zero yield curve for the 2year zero effective annual yield twpyears from now {i.e_, the rate for a 2year zero on ifi)? {4 points] d. There is a 5 year corporate bond currently trading in the market that pays a 5 percent coupon, with {for simplicity} ooupon payments made onoe a year at the end of the year [with the next coupon paid exactly one year from now]. The current price of this bond is $12. What muld be the price of this bond if the market considered this corporation to be free of default risk? [4 points
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