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21 Year 1 1-Year Forward Rate 5% 5.5% 6.0% 6.5% 7.0% 2 3 4 Skipped 5 Calculate the price at the beginning of year 1

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21 Year 1 1-Year Forward Rate 5% 5.5% 6.0% 6.5% 7.0% 2 3 4 Skipped 5 Calculate the price at the beginning of year 1 of an 8% annual coupon bond with face value $1,000 and 5 years to maturity. Multiple Choice O $1,131.91 O $1,105.47 O $1,084.35 $719.75 O O $1,150.01

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