Question: Example 2. We are given the following term structure at time t=0 : r1=0.05,r2=0.10,r3=0.15,r4=0.20 Suppose that the term structure stays constant for these 4 years.

Example 2. We are given the following term structure at time

Example 2. We are given the following term structure at time t=0 : r1=0.05,r2=0.10,r3=0.15,r4=0.20 Suppose that the term structure stays constant for these 4 years. Consider a 4 year zero coupon bond with C=100. Find the book and market values at times t=1,t=2, and t=3

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