Thu forsumpth f(1.12) of a bond, is the implicit interest rate in a future period difacounturatu from period 0 to t1 is: exp(-r t1), and from period 0 to 2 (greater than ti1is pop(-rt2) then the forward rate from t1 to t2 maintains the following no artitrage relationship: exp(-r t1) exp(f(t2t1)=exp(rt2)). Suppose we observe the prices of a 11-year zero-coupon bond (with a fac value of $90.35), where P(t1,t2) means the price of the bond between t1 and t2, and a year 4-to-11 forward rate as follows: P(0,11)=$85.3536450000 and f(4,11)=0.6175953186%. Calculate the price of a 4-year zero-coupon, with face value $90.42 : $89.1936$89.2545$77.5592$76.9355 The forward rate f(t1,t2) of a bond, is the implicit interest rate in a future period between time t 1 and t2. For example, assuming continuous time returns, if the discount rate from period 0 to t1 is: exp(rt1), and from period 0 to t2 (greater than t1) is: exp(rt2), then the forward rate f from t1 to t2 maintains the following no arbitrage relationship: exp(rt1)exp(f(t2t1)=exp(rt2)). Suppose we observe the prices of a 11-year zero-coupon bond (with a face value of $90.35 ), where P(t1,t2 ) means the price of the bond between t1 and t2, and a year 4 -to- 11 forward rate as follows:P(0,11) =$85.3536450000 and f(4,11)=0.6175953186%. Calculate the price of a 4-year zero-coupon, with face value $90.42 : $89.1936 $89.2545 $77.5592 $76.9355