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= 8. A 3-year 1,000 par value bond has 4.5% annual coupons. The forward rates implied by the yield curve are 10,1 = 0.033, 11,2
= 8. A 3-year 1,000 par value bond has 4.5% annual coupons. The forward rates implied by the yield curve are 10,1 = 0.033, 11,2 = 0.038, and 12,3 = 0.042. What is the price of the bond? A) 1,011 B) 1,016 C) 1,021 D) 1,026 E) 1,031
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