Question
The price of a zero-coupon bond with $100 face value maturing in three years is $92.83. The price of a zero-coupon bond with $100 face
The price of a zero-coupon bond with $100 face value maturing in three years is $92.83. The price of a zero-coupon bond with $100 face value maturing in five years is $86.63. What is the continuously-compounded forward rate for a loan to be made three years from now and paid back five years from now?
1)
3.900%
2)
4.138%
3)
3.455%
4)
2.675%
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Get StartedRecommended Textbook for
Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
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