Question: Year Forward Interest Rate 0 (today) 5% 1 7% 2 9% 3 10% What is the price of a 2-year maturity bond with a 10%

Year Forward Interest Rate

0 (today) 5%

1 7%

2 9%

3 10%

What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? (Par value = $1,000) A. $1,092 B. $1,054 C. $1,000 D. $1,073

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