Question $8$

The zero coupon curve above was published by Bestina Financial today. The reported rates

were derived using semiannual compounding.

Suppose that you entered a forward contract one year ago to borrow $$27,000$ for $2$ years at a

forward rate of $3\mathrm{.}79\%.$ Today is the settlement date. Find the amount you must pay or will

receive today to settle the contract $($assume that the current spot rates are used for settlement$).$

Assume $)$

Answer: Enter money you must pay as a negative number and money that you will receive as a

positive number rounded to $4$ decimal places.