Question: Please help sove the blank in B ( Face Value ) Suppose that the prices of zero - coupon bonds with various maturities are given
Please help sove the blank in B Face Value
Suppose that the prices of zerocoupon bonds with various maturities are given in the following table. The face value of each bond is
$
a Calculate the forward rate of interest for each year. Round your onswers to decimal places.
Answer is complete and correct.
b How could you construct a year forward loan beginning in year Round your Rate of synthetle loan answer to declmal
places.
Answer is not complete.
c How could you construct a year forward loan beginning in year Round your Rate of synthetle loan answer to decimal
places.
Answer is complete and correct.
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