In December 2021, the prices of two zero-coupon bonds are as follows:

Each bond makes a single payment of 100 at maturity. You expect that you will need to borrow 1,000 for a year between December 2023 and December 2024. Show that you can use the above two zero-coupon bonds to lock in the one-year interest rate on your loan.

6. In December 2021, the prices of two zero-coupon bonds are as follows: Maturity Price December 2023 84.18 December 2024 75.83 Each bond makes a single payment of 100 at maturity. You expect that you will need to borrow 1,000 for a year between December 2023 and December 2024. Show that you can use the above two zero-coupon bonds to lock in the one-year interest rate on your loan. (20%) (End of Paper)