Question
In January 2019, the term-structure of spot rates is as follows(with continuous compounding): A 3-year zero-coupon bond has the face value of $1,000. Consider a
In January 2019, the term-structure of spot rates is as follows(with continuous compounding):
A 3-year zero-coupon bond has the face value of $1,000. Consider a 2-year forwardcontract on the zero coupon bond. What should be the forward price?
Maturity (years) Zero-rate(%) 1 1.0 2 2.5 3 3.0
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Principles Of Project Finance
Authors: E. R. Yescombe
2nd Edition
0123910587, 9780123910585
