Question: Year 1-Year Forward Rate 1 - 4.6 % 2 -4.9 % 3 - 5.2 % 4 - 5.5 % 5 - 6.8 % What should

Year 1-Year Forward Rate

1 - 4.6 %

2 -4.9 %

3 - 5.2 %

4 - 5.5 %

5 - 6.8 %

What should the purchase price of a 2-year zero-coupon bond be if it is purchased today and has face value of $1,000?

Multiple Choice

A. $966.87

B. $911.37

C. $950.21

D. $956.02

E. $945.51

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