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PROBLEM3: At Time 0 you are quoted the zero-coupon bond prices shown in the table below. a) For each maturity, calculate the implied forward rate

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PROBLEM3: At Time 0 you are quoted the zero-coupon bond prices shown in the table below. a) For each maturity, calculate the implied forward rate for the final year of the bond, and the forward zero-coupon bond price for the final year of the bond Maturity PriceImplied Forward Rate Forward Price 1-year0.9750 2-year0.9500 3-year0.9250 4-year0.9000

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