Question: Year - 1 Year Forward Rate 1 5.8 % 2 6.4 % 3 7.1 % 4 7.3 % 5 7.4 % What would be the

Year - 1 Year Forward Rate

1 5.8 %

2 6.4 %

3 7.1 %

4 7.3 %

5 7.4 %

What would be the price at the beginning of year 3 of a 10% coupon bond with the face value of $1000, semi annual payments and 2 years to maturity?

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