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Please help. Show EXPLICIT calculations, not from Excel. Answer is $1026.79 for Part (a) and $1012.46 for Part (b). The 1.5-year spot rate is 6.10
Please help. Show EXPLICIT calculations, not from Excel. Answer is $1026.79 for Part (a) and $1012.46 for Part (b). 
The 1.5-year spot rate is 6.10 %. The 0.5-year discount factor is 0.97561. The 0.5-year forward rates 6 months from now and 18 months from now are 6.00 % and 8.11%, respectively Consider an 8 % coupon bond with 2 years to maturity and face value $1,000 (Assume that coupons are paid semi-annually) Identify the current price of the bond. (a) Solve for the price of the bond 6 months from now (b)
Please help. Show EXPLICIT calculations, not from Excel. Answer is $1026.79 for Part (a) and $1012.46 for Part (b).
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