You enter into a forward contract to buy a 10-year, zero-coupon bond that will be issued in one year. The par value of the bond is $1,000 and the 1-year and 11-year spot interest rates are 5.3 percent and 7.3 percent, respectively. Suppose in the next hour, there is a parallel downward shift in the spot rate curve by 1.5% across all maturities. What is the approximate net unrealized dollar gain or loss in your forward position an hour later

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To calculate the approximate net unrealized dollar gain or loss in your forward position an hour l... View the full answer