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how can you calculate the forward (delivery) price ? given: t bill t = 1.5 years. (3 periods) fv = $100 coupon rate= 4% (semi
how can you calculate the forward (delivery) price ?
given:
t bill t = 1.5 years. (3 periods)
fv = $100
coupon rate= 4% (semi annual) = 20
verify the delivery price will be $98.20 on the first period.
we have 2 given forward rates:
forward rate = 3.01% (for 1 year)
forward rate = 2.76% (for 1.5 year)
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