Question
1) Compute the price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100. Submission Guideline : Give your
1) Compute the price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100.
Submission Guideline: Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24.
2) Compute the price of a forward contract on the same ZCB of the previous question where the forward contract matures at time t=4.
Submission Guideline: Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24.
3) Compute the initial price of a futures contract on the same ZCB of the previous two questions. The futures contract has an expiration of t=4.
Submission Guideline: Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24.
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Quality Audits For Improved Performance
Authors: Dennis R. Arter
2nd Edition
0873892631, 978-0873892636
