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Find the 3-year/4-year forward rate from the following US Treasury bond prices and yields. Enter your answer as a percentage point to the nearest
Find the 3-year/4-year forward rate from the following US Treasury bond prices and yields. Enter your answer as a percentage point to the nearest 3rd decimal (so 3.425% would be entered as "3.425"). 1 year zero coupon bond with a 2.50% yield 2 year 2.00% coupon bond with a 3.00% yield 3 year 5.00% coupon bond with a 3.25% yield 4 year 3.00% coupon bond with a 3.50% yield
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To calculate the 3year4year forward rate we can use the formula 1 r44 1 r11 1 r22 1 r33 1 f341 Where ...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
