Question
6. The following table presents the spot prices of the risk-free interest rate market. The spot price of gold is $ 425 per ounce. If
6. The following table presents the spot prices of the risk-free interest rate market. The spot price of gold is $ 425 per ounce. If the gold storage cost is 0.15% per year and the convenience yield is a fixed 1%.
Complete the following table of gold prices and commodity swap rates.
| Maturity(t) | Spot Rate | Foward Price | Swap Rate |
| 1 | 0.03 | ||
| 2 | 0.035 | ||
| 3 | 0.04 | ||
| 4 | 0.043 | ||
| 5 | 0.045 |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
