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A 1-year bond currently sells at $961.54, while a 2-year bond sells at $907.03. Both are default-free zero-coupon bond with $1,000 par value. What
A 1-year bond currently sells at $961.54, while a 2-year bond sells at $907.03. Both are default-free zero-coupon bond with $1,000 par value. What is the forward rate for year 2?
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find the forward rate for year 2 by calculating the difference in the discoun...
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
