Business, 10.08.2021 01:00 juansantos7b
Suppose that all investors expect that interest rates for the 4 years will be as follows:
Year Forward Interest Rate
0 (today)6 %
1 7 %
2 9 %
3 10 %
What is the price of a 3-year zero-coupon bond with a par value of $1,000?
A) $765.55
B) $863.83
C) $772.18
D) $816.58
E) None of the options are correct.
Answers: 2
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Answers: 3
Suppose that all investors expect that interest rates for the 4 years will be as follows:
Year Forw...
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