Question
Suppose you now consider a purchase of a three-year zero-coupon bond that has a face value of $1,000, which is to be sold one year
Suppose you now consider a purchase of a three-year zero-coupon bond that has a face value of $1,000, which is to be sold one year from now. Given the information on the one-year forward rates below, please estimate the expected price of the three-year zero-coupon bond at the time of issuance.
| Year | One-year forward rate |
| 1 | 2.15% |
| 2 | 2.25% |
| 3 | 2.65% |
| 4 | 3.15% |
| 5 | 3.55% |
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Adventure Capitalist The Ultimate Road Trip
Authors: Jim Rogers
1st Edition
0375509127, 978-0375509124
