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The answers are provided. Please show your steps! F.9694 9592 3. Based on your calculations of the discount factors above, calculate a. The forward contract

The answers are provided. Please show your steps!

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F.9694 9592 3. Based on your calculations of the discount factors above, calculate a. The forward contract price of a one -year bond to be issued in one year. b. The forward contract price of a one-year bond to be issued in two years. = c. The forward contract price of a two-year bond to be issued in two years. =.9012 For each price calculation, demonstrate that the yield is equal to the corresponding forward rate you determined in (2) above. F.9694 9592 3. Based on your calculations of the discount factors above, calculate a. The forward contract price of a one -year bond to be issued in one year. b. The forward contract price of a one-year bond to be issued in two years. = c. The forward contract price of a two-year bond to be issued in two years. =.9012 For each price calculation, demonstrate that the yield is equal to the corresponding forward rate you determined in (2) above

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