Question: Year 1-Year Forward Rate 1 5 % 2 5.5 % 3 6.0 % 4 6.5 % 5 7.0 % Calculate the price at the beginning

Year 1-Year Forward Rate
1 5 %
2 5.5 %
3 6.0 %
4 6.5 %
5 7.0 %

Calculate the price at the beginning of year 1 of an 8% annual coupon bond with face value $1,000 and 5 years to maturity.

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