Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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The following is a list of prices for zero-coupon bonds
with par value of $1,000 and varying maturities.
Maturity (Years) Price of Bond ($)
943.40
898.47
847.62
792.16
1
2
3
4
Calculate the 1-year forward rate, deferred 3 years.
A 0.057
B 0.060
с
D
0.070
0.080
E 0.083
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Transcribed Image Text:The following is a list of prices for zero-coupon bonds with par value of $1,000 and varying maturities. Maturity (Years) Price of Bond ($) 943.40 898.47 847.62 792.16 1 2 3 4 Calculate the 1-year forward rate, deferred 3 years. A 0.057 B 0.060 с D 0.070 0.080 E 0.083
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