Please answer 2 short questions for me

- 2 of 3 ID: FMTH.BO.PON.CC.01A You are currently working as a bond trader for Silverman Machs Investment Bank. The Reserve Bank has just increased interest rates and a client is requesting a quote for the cash price of a particular bond. Your screen below displays the new zero interest rates with continuous compounding. Maturity Zero rate (months) (pa) 3 4.70 5.10 12 5.80 15 6.40 The bond has a coupon rate of 6% pa paid quarterly and a face value of $100. The bond matures in 15 months. Using the rates above, calculate the bond price. Give your answer in dollars and cents to the nearest cent. Bond price= -3 of 3 ID: FRM.TSIR.SFR.01A You are an assistant to the financial manager of Goodman Enterprises. Your boss is currently evaluating debt financing options for a new investment proposal. She asks you to calculate forward rates based on current zero-rates for the next 6 years. Calculate the forward rates for each of the following years and fill in the table. Give your answer as a percentage per annum to 1 decimal place. Year Zero-Rate (% pa) Forward Rate (% pa) 1 2.8 2 3.8 3 4.5 b) 4 5.1 5 5.6 6 5.8 e) All rates are continuously compounded rates. | | c) d)