You have entered into a forward contract with the following parameters Bond 10 year, zero coupon bond Issuance Will be issued in 1 year Face Value $1000 1 year spot rate 3 pct 10 year spot rate 6 pct What is the forward price Forward price $526 79 Forward price $542 16 Forward price $575 15 ...

Answer Here we have FV 1000 N 10 R 6 For the bond we will use 6 r ...

You have entered into a forward contract with the following parameters: Bond: 10 year, zero coupon bond

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You have entered into a forward contract with the following parameters:

Bond:	10 year, zero coupon bond
Issuance:	Will be issued in 1 year
Face Value:	$1000
1 year spot rate:	3 pct.
10 year spot rate:	6 pct.

What is the forward price?

Forward price = $526.79

Forward price = $542.16

Forward price = $575.15

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: Jan 07, 2021 09:02 PM

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You have entered into a forward contract with the following parameters: Bond: 10 year, zero coupon bond

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Answer Here we have FV 1000 N 10 R 6 For the bond we will use 6 r... View the full answer

Fundamentals of Futures and Options Markets

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