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1. Using the zero-coupon bond prices and natural gas deferred fixed-rate swap prices in the above table, what are gas forward prices for each of

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1. Using the zero-coupon bond prices and natural gas deferred fixed-rate swap prices in the above table, what are gas forward prices for each of the 4 years? (Hint: think bootstrapping) Year (or maturity) 1 2 3 Gas swap price (in %) 2.4236 2.2404 2.2326 2.2044 Zero-coupon bond price (in S) 0.9701 0.9388 0.9075 0.8763 4

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