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please solve this with in 1 hour 2 Fixed-Income Management (40 Points) Mark the appropriate box to indicate the correct answer. There is only one

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2 Fixed-Income Management (40 Points) Mark the appropriate box to indicate the correct answer. There is only one correct answer. If more than one box is marked, no points will be awarded for that question. For Questions 1-5 below, refer to the following table of zero-coupon rates for time t=0. Assume annual compounding. Consider a zero-coupon bond with a face value of $100 and five years to maturity. Compute its (modified) duration at t=0. (only one possible answer) 4.894.914.934.954.97 Question 4 4 points Compute the implied (fair) forward rate from Year 4 to Year 5. (only one possible answer) 0.80% 0.90% 1.00% 1.10% 1.20% 4 points Page 11 of 16 First Name: Question 5 Assumption: the zero-coupon spot rates after one year become the implied forwards from t=0. Consider a zero-coupon bond with a face value of 60$ and five years to maturity at t=0. Compute the change in fair value of this zero-coupon bond after one year. (only one possible answer) $1.00$0.600$0.60$1.00

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