These should be answered by building an n=10-period binomial model for the short-rate, ri,j. The lattice parameters are: r0,0=5%, u=1.1, d=0.9 and q=1q=1/2.

1) Compute the price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100

2) Compute the price of a forward contract on the same ZCB of the previous question where the forward contract matures at time t=4.