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Consider the following bonds with Face Value=100: Maturity Coupon Price 1 0 98 2 2.5% 102 3 0 94 4 4% 100 a. Find all

Consider the following bonds with Face Value=100:

Maturity Coupon Price
1 0 98
2 2.5% 102
3 0 94
4 4% 100

a. Find all the forward rates implied by the term structure of the above 4 bonds.

b, Using the above bonds, construct a forward contract that will pay you the same rate as 2f2.

c. Using the above bonds, construct a contract that will allow you to invest 100$ a year from now for one year at the 1f1 rate.

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