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Consider the following three bonds: Bond Coupon Rate Maturity (years) Price A 0% 1.0 $947.5572 B 7% 1.0 $1,014.8980 C 5% 1.5 $981.4915 Assume that
Consider the following three bonds:
| Bond | Coupon Rate | Maturity (years) | Price |
| A | 0% | 1.0 | $947.5572 |
| B | 7% | 1.0 | $1,014.8980 |
| C | 5% | 1.5 | $981.4915 |
Assume that coupons are paid every 6 months and the face values of all the bonds are $1,000.
(d) Identify the forward rate f0.5,1.5 (in yearly term) on a 12-month Treasury bill 6 months from now. (Keep 4 decimal places, e.g. 0.1234)
(e) Price the 1.5-year coupon bond 6 months from now. (Keep 2 decimal places, e.g. xxx.12)?
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