Question: Question 4(30 marks) Using zero-coupon bond prices (maturing every six months) given below, compute the value of this swap. Zero-Coupon Bond Prices in the United

Question 4(30 marks) Using zero-coupon bond prices (maturing every six months) given below, compute the value of this swap. Zero-Coupon Bond Prices in the United States (Domestic Country) and the United Kingdom (Foreign country) Time to Maturity (in years) US (Domestic) Zero- Coupon Bond Prices (in dollars) UK (Foreign) Zero- Coupon Bond Prices (in pounds sterling) 0.5 B(0.5) = $0.99 B(1) = 0.97 B(1.5) = 0.95 B(2) = 0.93 B(2.5) = 0.91 B(0.5)= 0.98 B(1), = 0.96 B(1.5), = 0.93 B(2)= 0.91 B(2.5), = 0.88 B(3) = 0.88 B(3), = 0.85

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