Question 1

Compute the price of a zero-coupon bond (ZCB) that matures at timet=10and that has face value 100.

Question 2

Compute the price of a forward contract on the same ZCB of the previous question where the forward contract matures at timet=4.

Question 3

Compute the initial price of a futures contract on the same ZCB of the previous two questions. The futures contract has an expiration oft=4.

Question 4

Compute the price of an American call option on the same ZCB of the previous three questions. The option has expirationt=6and strike=80.