The forward prices on a barrel of crude oil are $43 and $45 in years one...
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The forward prices on a barrel of crude oil are $43 and $45 in years one and two, respectively. a. What is the likely two year swap price on a barrel of crude oil, if the interest rates on zero coupon government bonds are 4.0% and 4.5% in years one and two, respectively? b. What is the likely two year swap price on a barrel of crude oil, if the 1- and 2-year interest rates on zero coupon government bonds are 4.0% and 4.5%, respectively? The forward prices on a barrel of crude oil are $43 and $45 in years one and two, respectively. a. What is the likely two year swap price on a barrel of crude oil, if the interest rates on zero coupon government bonds are 4.0% and 4.5% in years one and two, respectively? b. What is the likely two year swap price on a barrel of crude oil, if the 1- and 2-year interest rates on zero coupon government bonds are 4.0% and 4.5%, respectively?
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Answer rating: 100% (QA)
a To calculate the 2year swap price Discount year 1 forward price 43 ... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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