Using the information in Table 7.1, a. Compute the implied forward rate from time 1 to time

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Using the information in Table 7.1,

a. Compute the implied forward rate from time 1 to time 3.

b. Compute the implied forward price of a par 2-year coupon bond that will be issued at time 1.

 LO.1

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Derivatives Markets

ISBN: 978-0321280305

2nd Edition

Authors: Robert L. McDonald

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