Question: n = 10 r 0,0 = 5% u = 1.1 d = 0.9 q = 1 - q = The price of a zero-coupon bond

n = 10

r0,0 = 5%

u = 1.1

d = 0.9

q = 1 - q =

The price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100 is $61.62

Calculate the price of a forward contract of the same ZCB. Assume the forward contract matures at time t = 4.

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