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Based on the following discount factors, calculate the forward contract price of a two-year bond to be issued in two years. Maturity Par Rate Spot
Based on the following discount factors, calculate the forward contract price of a two-year bond to be issued in two years.
| Maturity | Par Rate | Spot Rate | Discount Factor |
| 1 | 2.00% | 2.00% | 0.9803 |
| 2 | 2.57% | 2.5774% | 0.9503 |
| 3 | 3.11% | 3.1331% | 0.9116 |
| 4 | 3.88% | 3.9490% | 0.8565 |
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The Foundations Of Business Analysis
Authors: M Douglas Berg
1st Edition
1465222030, 9781465222039
