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The price of a one-year zero-coupon bonds is $98.50. The price of a two-year zero-coupon bonds is $91.25 (assume semiannual). a. What is the forward
The price of a one-year zero-coupon bonds is $98.50. The price of a two-year zero-coupon bonds is $91.25 (assume semiannual). a. What is the forward rate of interest for the second year? b. If you believe in the expectations hypothesis, what is your best guess as to the expected value of the short-term interest rate next year?
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Option Volatility And Pricing Advanced Trading Strategies And Techniques
Authors: Sheldon Natenberg
2nd Edition
0071818774, 978-0071818773
