Exercise 1. Consider a situation where you have 2 zero-bonds available. a (n + 1)-periods bond, paying $1 in period n +1, and current price Pn+1 a n-periods bond, paying $1 in period n, and current price P Show how an investor can use these two bonds to construct a forward contract from n periods ahead to n + 1 periods that guarantees a payment of $1 in period n + 1. Obtain the implied interest rate as a function of the zeros' current prices, and explain why this is the forward rate