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Problem 15-19 The prices of zero-coupon bonds with various maturities are given in the following table. Suppose that you want to construct a 2-year maturity
Problem 15-19 The prices of zero-coupon bonds with various maturities are given in the following table. Suppose that you want to construct a 2-year maturity forward loan commencing in 3 years. The face value of each bond is $1,000. Maturity (Years)Price $983.16 2 830.92 769.40 664.94 4 a. Suppose that you buy today one 3-year maturity zero-coupon bond. How many 5-year maturity zeros would you have to sell to make your initial cash flow equal to zero? (Round your answer to 4 decimal places.) 5-year maturity zeros
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