Question: Suppose that the forward rate is r(t) = 0.028 + 0.00042t. (a) What is the yield to maturity of a bond maturing in 20 years?

Suppose that the forward rate is r(t) = 0.028 + 0.00042t. (a) What is the yield to maturity of a bond maturing in 20 years? (b) What is the price of a par $1,000 zero-coupon bond maturing in 15 years?

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