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The following table shows the prices of $100 zero-coupon bonds, redeemable at par: Term Price 1 $95.23 2 89.84 3 84.56 4 79.21 5 75.24
The following table shows the prices of $100 zero-coupon bonds, redeemable at par:
Term | Price |
1 | $95.23 |
2 | 89.84 |
3 | 84.56 |
4 | 79.21 |
5 | 75.24 |
6 | 71.50 |
Determine the 2-year forward rate, deferred for 3 years.
Options for answers are:
6.50%
12.39%
6.01%
6.09%
5.25%
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