Question: QUESTION 17 Consider the following data on a bond Forward rates % Yr 1 - 4.5 Yr 2 - 5.2 Yr 3 - 5.9 Yr

QUESTION 17

Consider the following data on a bond

Forward rates %

Yr 1 - 4.5

Yr 2 - 5.2

Yr 3 - 5.9

Yr 4 - 6.3

Yr 5 - 7

What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?

put all working out and dont use execl

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