Question: Suppose Today a 1 - year zero - coupon bond costs $ 9 8 Today you can enter a contract to buy a 1 -

Suppose
Today a 1-year zero-coupon bond costs $98
Today you can enter a contract to buy a 1-year zero-
coupon bond 1 year from today for $98(forward
contract)
What must be the price today of a 2-year zero-coupon
bond?
How could you make an arbitrage if the 2-year zero
were trading at $95?
Suppose Today a 1-year zero-coupon bond costs $98 Today you can

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