PLEASE SOLVE THESE AND EXPLAIN HOW TO DO THEM IN STEPS:

The following information relates to Questions 1629

A one-year zero-coupon bond yields 4.0%. The two- and three-year zero-coupon bonds yield 5.0% and 6.0%, respectively.

Excerpt From: Barbara S. Petitt. Fixed Income Analysis Workbook. Apple Books.

The five-year spot rate is not given above; however, the forward price for a two-year zero-coupon bond beginning in three years is known to be 0.8479. The price today of a five-year zero-coupon bond is closest to:

0.7119. 0.7835. 0.9524. The one-year spot rate r(1) = 4%, the forward rate for a one-year loan beginning in one year is 6%, and the forward rate for a one-year loan beginning in two years is 8%. Which of the following rates is closest to the three-year spot rate?

4.0% 6.0% 8.0% The one-year spot rate r(1) = 5% and the forward price for a one-year zero-coupon bond beginning in one year is 0.9346. The spot price of a two-year zero-coupon bond is closest to:

0.87. 0.89. 0.93.

Excerpt From: Barbara S. Petitt. Fixed Income Analysis Workbook. Apple Books.