The following are the 1 year forward rates over the next three years Period Rate ( ) 0y1y 2 61 1y1y 3 99 2y1y 4 74 What is the fair value of a default free straight bond with 3 years to maturity, annual coupon payments, and 6 2 coupon rate

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The following are the 1 year forward rates over the next three years: Period Rate (%) 0y1y 2.61 1y1y 3.99 2y1y 4.74 What is the

The following are the 1 year forward rates over the next three years:

Period	Rate (%)
0y1y	2.61
1y1y	3.99
2y1y	4.74

What is the fair value of a default-free straight bond with 3 years to maturity, annual coupon payments, and 6.2% coupon rate?

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