Question
1- Calculate the one-year forward rate three years from now if three- and four-year rates are 5.50% and 5.80%, respectively? 2- A bond is currently
1- Calculate the one-year forward rate three years from now if three- and four-year rates are 5.50% and 5.80%, respectively?
2- A bond is currently priced at $1,025 and had a modified duration of 15.55 years. If interest rates were to decline by 0.35%, what would be the predicted new bond price?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
