Question: whats the answer Suppose that a commodity's forward prices for 1 year, 2 years, and 3 years are $81, $79, and $74, respectively. The 1-year

whats the answer

Suppose that a commodity's forward prices for 1 year, 2 years, and 3 years are $81, $79, and $74, respectively. The 1-year effective annual interest rate is 5.1%, the 2- year interest rate is 5.6%, and the 3-year interest rate is 5.9%. What is the 3-year swap price? $210.22 O $70.07 O $78.14 $95.57 O $71.42

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!