Question: Consider the following data on a bond Year 1 2 3 4 5 6 Forward rates (%) 4.5 5.2 5.9 6.3 6.8 7 What should

Consider the following data on a bond
Year
1
2
3
4
5
6
Forward rates (%)
4.5
5.2
5.9
6.3
6.8
7
What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?
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